The Financial Services Authority will set all market average commission rates for menu commissions, however, adviser firms will be expected to update their document if the FSA makes changes, according to the FSA's conduct of business rules proposals.
Details at the back of the FSA’s latest depolarisation consultation paper in the CP04/03 Annex, under COB4 Annex 8R pages 61-65 note advisers will have to update the average market value details of each product within two months of any amendments to the FSA-collated rates, in cases where the amendment cut the previous market average by 4% or more. There is no indication at this stage, however, to suggest whether the FSA will alter these rates on a set date, otherwise it might require advisers monitor on a weekly basis whether average commission calculations have changed. Advisers will...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
