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FSA adviser fees may go up to weed out the “rogues”, says regulator

There is likely to be a short term increase in FSA adviser fees to get rid of the “rogues” that are currently in the market, says the FSA.

Speaking at the PFS conference in Birmingham today, director of small firms Stephen Bland said the FSA is increasing small firm supervision which he says will lead to a “shake out” in the industry as it moves towards higher standards.

He says this extra supervision is likely to result in an increase in adviser fees to cover the costs of this extra work.

But he said in the longer term advisers, particularly small firms, will benefit through the changes in the retail distribution review which he believes will lead to lower Financial Ombudsman Service and Financial Services Compensation Scheme costs for advisers.

Addressing fears that the RDR will squeeze out small firms Bland said he expected a healthy and thriving small firms community as a result of the changes.

Bland said: “We want to get rid of the rogues in the market and provide help for the vast majority of firms wanting to do the right thing. There will be a bit of a shake out as we move towards higher standards in the IFA industry. There will be a short term rise in direct FSA costs but overall the package should go down and I have every confidence there will be a healthy community going forward.”

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Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.

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