IFAs face annual £10m CAR charges

The cost for providers is estimated at £60m initial spread over the first five years and then £5m a year after that if CAR is applied to packaged investment products, according to research by consultancy Charles River Associates for the ABI. "It(CAR) will require more flexible systems that allow different charges for advice to be applied and new disclosure to inform consumers of the consequences of their actions. In the short-term this requires system changes by providers but in the longer term it will impose costs on intermediaries due to increased time with clients and answering addition...