Plans to introduce a Defined Payment System and Authorized Financial Advisers could now be scrapped ...
Plans to introduce a Defined Payment System and Authorized Financial Advisers could now be scrapped by the FSA, as officials are hinting the AIFA's menu option could be the favoured remuneration system for advisers.
FSA officials say they are unable to substantiate reported comments made by David Severn, head of the FSA's polarisation review, at a conference in London yesterday - which suggested proposals to implement the DPS have now been thrown out - as Severn did not make any speech notes.
However, if the FSA decides to move in favour of any other than the Defined Payment System there will be no need to introduce AFAs, says Louise Buckley, FSA spokeswoman.
Proposals for a menu of payment systems, rather than a straight split between fee-based advice and commission-paid advisers, is now being looked at favourably, says Tracey Mullins, director of communications at the AIFA.
Admittedly, it is just one of several options they are looking at, but comments which are said to have been made by Severn have been backed by similar comments from John Tiner at a joint ABI/BBA conference on Sandler earlier this week.
Tiner told delegates the menu option was one of the systems it was considering as the part of the CP121 consultation.
It is uncertain when the FSA is likely to announce its preferred payment system for financial advice but all papers relevant to CP121 will be published by Christmas, the FSA announced some time ago.
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