views

Adviser fees to be revised

<div>FINANCIAL advisers could be barred from charging commission on the products they sell, under proposals unveiled by the Financial Services Authority yesterday.<br /><br />The City watchdog, led by chief executive Hector Sants, said in its Retail Distribution Review (RDR) that financial advisers should charge customers an up-front fee, rather than taking commission from the companies whose products they market.<br /><br />The suggestion is designed to eliminate the phenomenon of &ldquo;commission bias&rdquo;, whereby financial advisers offer products based on their expectation of a hefty commission.<br /><br />Jon Pain, the FSA&rsquo;s managing director of retail markets said the proposals were aimed at &ldquo;regaining consumer trust and confidence in the retail investment market, building a more sustainable sector and making it easier for people to find their way around and get the help they need&rdquo;.<br /><br />The RDR also recommended that both independent advisers and those who work for financial institutions should be required to pass an exam equivalent to the first year of a university degree. The proposals, which end a review process which has lasted three years, would come into effect from 2012 if adopted.</div>