View more on these topics

Scot Life says providers snubbed decency limits on adviser-charging

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.”

Recommended

Stress test to assess performance

The FSA says structured product providers should stresstest their products to establish how they would perform under a variety of conditions. Last week, the FSA published guidance following its review of structured product development and governance. It says stress tests should be built into the product approval process, with defined triggers for when they will […]

Multi- manager view

With the Greek problem punted into the middle distance, investors have had to find something else to worry about. The price of oil has stepped up to the oche, with the recent price hikes and the Iranian tensions making it the obvious choice for the nail-biters among us. Previous episodes of elevated oil prices have […]

PPI pushes Lloyds to top of complaint league

Lloyds Banking Group was the most complained about business group during the second half of last year while Barclays Bank was the most complained about brand. The FSA’s latest set of complaint data, published last week, shows Lloyds received a total of 489,099 complaints across the group between July 1 and December 31. The figure […]

Nearly 30% of UK adults don’t understand stocks and shares Isas

A survey by Barclays has discovered that 29 per cent of UK adults have no understanding of how a stocks and ISA works. The results also show that just 6 per cent of 18-24 year olds actually have a stocks and shares ISA, despite 26 per cent of respondents claiming they would consider setting one […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. It won’t make a difference if the Government has its way as all computers will soon be able to be accessed remotely to check up on us

  2. Who decides what is decent?

  3. Anonymous – the FSA do. This is not a democracy.

  4. Would not be so hard to stomach if the FSA ever imposed any decency levels on their own remuneration package.
    The FSA would do well to remember that from any charge an adviser may make,a percentage will go towards FSA fees, FSCS levies, FSCS interim Levies, MAS levies, compliance costs, paraplanning & research costs, PI insurance etc. etc. etc.
    The more the FSA charge us, the more we need to charge the client. Simples.

Leave a comment