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Lawyers have moved from fees

Will European law allow the FSA to force IFAs down the fee route?

There is 17.5 per cent VAT on fees but not on commission. This is unacceptable.

Who can force product providers to pay commission?I think they will switch from renewal commission to “servicing fees.

If I wrote to all clients saying that we will have an upper limit of 3 per cent commission on all initial investments and an upper limit of 0.5 per cent on renewal fees is this a defined scale?I think so.

Why not start a campaign yourselves? Call everyone financial advisers, require them to publish the sources of income over their previous financial year as a percentage from each source.

Why not ask yourselves who is lobbying for these changes? The vested interests can be traced to those who shout loudest and they are the ones who need to protect their market share.

Who cares what I am called? I hear rumours that an IFA in Cornwall is setting up a company called Chocolate Cake Ltd. Clients will remain loyal to the adviser who they can trust. Should I change the name of my company to Independant Financial Advisers Ltd (spelling intentional) and then become an Authorised Financial Adviser?

The serious suggestion is that the FSA identify the client banks. Tied agents may be the best source of advice for those who have less than £1m but the client really wants someone trustworthy to look after his widow. People with money simply cannot be bothered with the enormous pile of paperwork as their time can be used better, so tell FSA to reduce the enormous burden of paperwork rather than try to change an area which is actually working very well

Cut all the **** and just ask the client to sign an acknowledgement that he/she/they are satisfied that the adviser has provided sufficient explanations and paperwork to meet the client&#39s requirements

Many lawyers no longer work on a fee basis. No win,no fee is applauded by the public, so that is no different to commission.

If I am prepared to cap the initial commission then there can be no product bias. What the FSA needs to do is to launch a free (or subsidised) service for people who would qualify for Legal Aid. Then it could cut its own paperwork immensely.Dave Mattos

Rock Investment Services,

Shepton Mallet, Somerset


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