Tenet is calling for the cost of commission to be expressed in reduction in yield terms as a simpler and more transparent disclosure of costs to clients.
Chief executive Simon Hudson said Mifid rules demand that the industry determines how advice is valued and priced, even if commission disclosure is removed altogether.
He said it is a challenge for the FSA and intermediary groups to put a price and value on advice.
Hudson said Tenet would like to see costs disclosed as a reduction in yield that is outlined in pounds and pence as a share of the overall investment paid by the customer.
He said: “We would be able to say to the client, of the 1,000 you invest, 50 is to cover costs, some of which is for my advice and some for product management fees. It is all then encapsulated and transparent. If it was called cost disclosure and not commission disclosed, then commission would not be seen as the bad boy it is now.
“The consumer is blind to the total cost in terms of simple reading anyway. If we can move commission disclosure to a new form, calling it not commission disclosure but cost disclosure, we can move the whole of the market into a different position that is far simpler.”