The FSA has today released the long-awaited Menu for pricing financial services products.
Under the FSA's new proposals, advisers will give all consumers buying retail investment products, such as pensions, life assurance and unit trusts, a guide entitled “A guide to the cost of our services” at the start of any advice-giving situation with a firm.
Currently, advisers have to disclose to the consumer the amount they receive as commission for selling a product. But the FSA believes this is not as effective as it could be in educating consumers about what advice is costing.
FSA head of retail projects David Severn says today's proposals should help give consumers a better idea of their choices and of typical advice costs in the marketplace.
Severn says: “Many consumers remain reluctant to pay up-front fees for financial advice. If consumers want their adviser to take commission, that is their choice. We want consumers to be clear about the amount of commission being paid so they can have confidence that the financial advice they get is not being influenced by the level of commission.”