View more on these topics

FSA sets out benchmarks

The FSA has published the market-average figures for the cost of financial advice which firms must provide for all consumers by June 2005.

When IFAs are paid by commission, they will be required to provide these benchmark figures in the disclosure (key facts) document at the beginning of the advice process.

The key facts document will provide the consumer with information about the firm’s own maximum commission levels next to the market average for products including collective investments, personal pensions, endowments and annuities.

Firms have until June 1 next year to make the changes but if they choose to switch status during this time they will have to provide the information from that point.

The figures have been calculated using data from all major product providers on the levels of commission actually paid, taking into account cases where product terms are enhanced in return for a lower commission payout.

Aifa has voiced concern in the past over the inclusion of a market average, questioning whether the benefits of its inclusion outweigh the costs of delivery, as it says only a minority of consumers would use the document to shop around. It adds that the comparison between a firm’s maximum rate and the market average could be viewed as unfair, particularly when a firm may only take the maximum occasionally.

FSA director of retail policy Dan Waters says: “The FSA has put these figures into the public domain to enable consumers to see how their adviser’s costs and services compare with the average in the market. The market average will, for the first time, provide consumers with a benchmark for what might be a competitive level of commission and will enable them to shop around and negotiate over the cost of advice.”


Lenders urged to be inclusive

Lenders should assess and price risk for non-conforming borrowers rather than exclude them, says a new study of the market.

Loan firms predicting demise of packagers

A large number of packaging operations will disappear in the new regulated environment as transparency measures expose what they are earning, warn mortgage intermediaries.

Is Pru staging a dirty war?

You have to wonder whether the man at the Pru is trying to destroy Money Mark-eting’s relationships with rival firms.How exactly is it doing this? By exerting its iron fist as landlord and preventing journalists from showering. Far-fetched, you may think, or just cunning?Having put up with cold showers for months, the cat was finally […]


Natixis Global Asset Management’s quarterly Portfolio Barometer offers insights into UK financial advisers’ model portfolios and the allocation decisions they are making. Natixis’s Portfolio Research & Consulting Group works with financial advisers and other intermediaries to analyse and enhance their model portfolios and help them develop investor portfolios suited to today’s complex markets. The Portfolio […]


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