The FSA appears to have abandoned its plans for the defined payment scheme (DPS) it proposed in CP 1...
The FSA appears to have abandoned its plans for the defined payment scheme (DPS) it proposed in CP 121 and may look to adopt Ron Sandler's suggestions.
The regulator has received some 700 responses to CP 121, two thirds from intermediaries, the majority of which were unsupportive of the proposed payment scheme.
David Severn, head of conduct of business standards at the FSA, was reported as saying the regulator is no longer considering the defined payment system detailed in CP 121. When Investment Week contacted the FSA, it was unable to confirm this.
Earlier last week, John Tiner, FSA managing director, speaking at a joint ABI/BBA seminar, The Long Term Savings Industry Post Sandler Review, said the FSA is now considering two alternative proposals to the DPS: Ron Sandler's charging structure, in which a consumer and IFA agree a rate together; and a similar price list proposal put forward by Aifa and IFAP.
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