As tipped by Money Marketing, the retail distribution review consultation paper released today says that adviser charging will apply to GPPs but only when members are given personal advice on the merits of joining.
The FSA is seeking views from the industry on how adviser charging can apply to schemes sold without advice and gives one solution as “arranger charging”.
It says: “where advice is not given to employees, any intermediary remuneration would be negotiated between the intermediary and the employer, even if it was ultimately obtained from contributions or scheme funds.”
The FSA says it wants to ensure that its rules on future charging structures will protect consumers once personal accounts come into force in 2012, warning of a danger that advisers might recommend a GPP that is more expensive than personal accounts on the grounds that it offers greater investment choice.
It says this is something not likely to be needed by most customers eligible for personal accounts.