FSA backs IFAs in remuneration debate

IFAs should not be forced to move to a fee-based system of remuneration as the lack of choice would be detrimental to consumers, concludes a report on polarisation by consultants London Economics, writes Kira Nickerson. The report on polarisation, carried out on behalf of the FSA, recommends introducing a third tier of intermediation or remaining with polarisation. It has rejected the OFT's suggestion of a phased multi-tied arrangement, in which multi-tied advisers could sell investment products but only tied or IFAs could sell pensions products. The economists also rejected the idea of s...