Simplify "menu" by separating cost of advice - LIA

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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...

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