‘Menu will see IFAs win hands down’

Banks’ tied salesforces must disclose the commission they get to consumers in the same way as IFAs and multi-ties, the FSA confirms.

IFA Promotion believes this will benefit IFAs as consumers will understand that advice has to be paid for and they will start to demand more for their money, turning towards IFAs and away from other offerings.

The FSA expects around 60 per cent of banks to multitie through gap-filling but expects the majority of IFAs to remain independent.

Head of retail policy Dan Waters says: “I know the IFA community is worried about depolarisation but they should feel confident that this regulation gives them a better deal and a level playing field with tied advisers. We have worked hard to ensure we do not undermine the independent sector.”

IFAP chief executive David Elms says: “The menu will mean that when consumers shop around, they are comparing not just the cost of advice but its value. When the offering of tied, multi-tied and independent advisers are put side by side, IFAs win hands down.”

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