FSA proposes firm body on softing

clock

An independent body or "investor representative" has been proposed by the FSA to act on behalf of retail investors on the esoteric issue of soft commissions in the field of retail funds.

The proposal is included in consultation paper CP 05/13 Bundled Brokerage and Soft Commission Arrangements for Retail Investment Funds, which follows on from previous consultation on the issue of ‘softing’ affecting institutional clients. Applying new rules in the retail fund market are necessary to ensure “fairness and accountability for investors”, the FSA states, while also ensuring any expenditure by investment managers charged to clients’ portfolios represents value for money. ”For this to happen, there must be competitive pressure on the manager, which will come through widesprea...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Octopus CEO: 'Advisers are the GPs of money – but AI will do the heavy lifting'

Octopus CEO: 'Advisers are the GPs of money – but AI will do the heavy lifting'

Simon Rogerson urges financial planning profession to embrace tech or risk irrelevance

Sahar Nazir
clock 15 May 2025 • 2 min read
Timeline launches first multi-asset fund in bid to simplify investing for advisers

Timeline launches first multi-asset fund in bid to simplify investing for advisers

Firm eyes FCA approval to roll out low-cost, evidence-based fund aligned with adviser demand

Sahar Nazir
clock 15 May 2025 • 2 min read
Pete Matthew: 'Arrogant' advisers need to 'get over themselves' to scale growth

Pete Matthew: 'Arrogant' advisers need to 'get over themselves' to scale growth

Advice business owner and planner expresses frustration at industry

Sahar Nazir
clock 15 May 2025 • 1 min read