Simplify "menu" by separating cost of advice - LIA

clock

The Life Insurance Association has proposed a new approach to the FSA's "depolarisation" pricing menu which would break down the cost of advice from product purchase and ongoing service.

Writing in response to the FSA’s CP 04/3 consultation paper, the LIA suggests a fee charging template which separate the charges for advice, order taking, arranging and ongoing service could help consumers understand the actual cost of the advice they receive. It would not be necessary to require the advice be paid only in fees, says the LIA, as the intention is to make it clear to consumers that advice is not free. Once told of the full cost of advice, product and ongoing service, the client can then decide to pay the fee either directly to the adviser or cost it into the purchase of...

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

Professional Adviser journalist wins Headlinemoney award

Professional Adviser journalist wins Headlinemoney award

Prestigious awards celebrate financial services journalism excellence

Professional Adviser
clock 18 July 2025 • 1 min read
PA Digital Working Lunch: Baillie Gifford on the compelling UK opportunity

PA Digital Working Lunch: Baillie Gifford on the compelling UK opportunity

Join PA and Baillie Gifford online next Wednesday

Professional Adviser
clock 18 July 2025 • 1 min read
'Will this return us to one-size-fits-all?': Industry divided over Reeves' Consumer Duty wholesale review

'Will this return us to one-size-fits-all?': Industry divided over Reeves' Consumer Duty wholesale review

Wholesale exemption would ‘adversely affect the Duty’s objectives’

Sahar Nazir
clock 17 July 2025 • 5 min read