Aifa has criticised the FSA for introducing “significant” changes to its adviser-charging rules with only 18 months to go until the RDR deadline.
The regulator’s quarterly consultation paper proposes new rules designed to ensure clients can cancel an ongoing advice service without having to withdraw their investments. It says this would apply where ongoing advice charges are linked to an overall service such as advice charges tied in with fund management charges.
Aifa director general Stephen Gay says: “It is a matter of concern when significant changes are made late in the day, particularly when they have the potential to add significantly to development costs and create greater turbulence and uncertainty.”
Yellowtail Financial Planning managing director Dennis Hall says: “I got concerned when I read about the amendments to adviser-charging rules in particular. There is not much time left until the RDR and the FSA is shifting the goalposts quite significantly.”