Polarisation rule change proposals

The IFA industry will change radically if recommendations from a report by the Office of Fair Trading on polarisation are accepted by the Government. The proposals, issued last week, recommended that polarisation rules relating to investment advice on unit trusts and Oeics should be scrapped. However, polarisation for advice on life and pensions products should remain. This paves the way for IFA businesses to introduce multi-ties to product providers for non-life products. The reasoning behind the proposals is that polarisation rules, even if they provide consumer protection, distort com...