The FSA has confirmed consumers will be able to pay charges direct to an adviser or agree for the provider to pay them from the investment in the post-RDR adviser charging regime.
In today's feedback to CP11/25, the watchdog said deducting adviser charges from products and deducting initial charges from customers are both valid ways of facilitating charges after 2013.
The rules apply to both vertically integrated firms as well as to firms facilitating payment of adviser or consultancy charges advisers who are independent of their firm.
Separately, the regulator also said it should be up to product providers and advisers to agree what should happen in the event a consumer cancels a product and to ensure this is made clear to the consumer.
Referring to a suggestion from the Financial Services Consumer Panel to adopt a standard script for communicating to customers the impact of cancellation, it said it will not mandate wordings for cancellation notices.
But it said: "The overarching requirement for communications to be clear, fair and not misleading will apply to the wordings in the same way as to other communications to customers."
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