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Tiner tells the CII that commission is still on the cards

The FSA has publicly acknowledged that IFAs may still be able to get paid by commission following depolarisation.

Speaking at the Chartered Insurance Institute annual conference in Birmingham last week, FSA managing director John Tiner repeated the regulator&#39s message that it is looking at a number of alternatives to its defined-payment system, including Aifa&#39s menu option.

Taking the debate one step further, however, Tiner said Aifa&#39s menu is interesting because it allows IFAs to be remunerated both through fees and commission.

The FSA appears to have been steadily moving away from the DPS in recent weeks following criticism from the industry that it would result in decimation of the IFA sector.

Tiner said: “The menu is quite interesting because there would be fee options and commission options. We want consumers to understand it and benefit from it. We want to keep the cost burden down and we want to ensure that there is an IFA sector left.”

Life Insurance Association head of public affairs John Ellis says: “At this stage, it is still just an option but before it was not even on the list of options.

“It is unrealistic for the FSA to expect all IFAs to move to fees when 90 per cent of business is currently done on a commission basis.”


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