Scottish Life says providers roundly rejected an FSA suggestion that decency limits on adviser-charging should be introduced.
Speaking at a Money Marketing RDR invitational event in London last month, business development manager Fiona Tait said the regulator wanted providers to report advisers who were taking excessive adviser charges from products.
Tait said: “The FSA did try and introduce the concept of decency limits.
“It wanted providers to look at what was being paid out of their products and if we thought it was too much, we were supposed to report that back to the FSA.
“Unanimously, we all went back to the FSA and said we do not want to do that and we cannot do that.
“If the charge is related to the services that the adviser has given to the client, we do not know the time spent on that.”
Tait said while providers cannot tell advisers what is an acceptable level of adviser charging, they will tell advisers the maximum percentage they are prepared to pay out of products.
Thameside Wealth director Tom Kean says: “The providers were absolutely right to reject this. It is an example of the FSA trying to tamper with things that they do not understand.”