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Legal aspect

One very brief question. Currently, the Institute of Chartered Accountants and the Law Society only permit their members to deal with IFAs.

It would be interesting to know whether they will in future deal with the new authorised advisers as well as IFAs? As far as I can tell, the new IFA will have a prescribed method of remuneration.

The authorised IFA, while still being able to access the whole market, will be remunerated by commission. but there is nothing to stop him charging fees and rebating.

The main difference in this scenario is that the authorised adviser will be able to protect and continue to receive fund-based commission (subsidising up-front charges), which presumably the new IFA will not be able to do.

The authorised adviser will also probably be able to dodge the VAT issue, too.

If the other professional bodies are prepared to deal with authorised advisers, it would seem that we will be”a rose by any other name”.

Have I read the position correctly? Even if I have, it is too soon even to breathe – CP 121 has just been the artillery, a further onslaught, in the shape of Sandler, comes next.

Take cover!

Harry Katz

Norwest Consultants,




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