AIFA tackles Customer Agreed Remuneration confusion

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AIFA has released the first in a series of RDR Issues Papers which seeks to clarify the FSA's current position on commission and Consumer Agreed Remuneration (CAR).

The paper sets out the facts surrounding the FSA’s remuneration proposals for financial advisers, including the possible introduction of CAR and a potential ban on commission for Professional Financial Planners. AIFA clarifies the FSA's definition of CAR using the following criteria: Products are priced by manufacturers excluding charges to cover the costs of remuneration to advisers for their services. Advisers and customers agree the level and pattern of remuneration, in the context of a discussion of all services being supplied (and to be supplied). This is very much like a fee...

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