View more on these topics

FSA set to clarify DFM adviser payment rules

FSA Front 480

The FSA is planning to outline explicit rules that prevent payments between advisers and discretionary fund managers.

The regulator will issue a consultation in the autumn setting out clearly that no payments can be made to advisers who are outsourcing investment management to a DFM.

FSA head of investment intermediaries Linda Woodall says: “We expect discretionary managers to stop payments to advisers if that adviser continues to offer advice to a client in any form, not just on the assets held by the discretionary manager. We will be clarifying these rules shortly.”

An FSA spokeswoman says although the regulator believed its rules on adviser charging under the retail distribution review were already clear, the consultation will aim to address the issue of payments by DFM services from next year.

The regulator told adviser firms in July to explain to clients clearly the DFM’s role where there is no direct contract between the DFM and the client. The statement was made as part of the regulator’s final guidance on centralised investment propositions and replacement business.

Page Russell director Tim Page says: “This is a little fire that is flaring up around the bonfire that is the RDR. The FSA policy team is just plugging any loopholes and ensuring its RDR rules are watertight.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm