The Financial Services Authority has reduced its market average figures for financial advisers to use in their menus.
Firms advising on collective investments regular, endowments regular and investment bond single must incorporate the new figures by 1 January 2007, as the rates for these products have reduced by 4% or more.
Firms are required to revise their menus when the change in rates reduces the averages for a relevant product group by 4% or more.
The FSA has also updated its menu commission calculator, which enables firms selling investment products to calculate their maximum commission and corresponding market average.
Advisers enter their commission, or commission equivalent rates, for each appropriate product grouping and the calculator displays the information they need to include in the menu.
Firms can either download an Excel version of the calculator or they can use a web-based version or calculate the figures manually.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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