Deloitte warns of 'complexities' in commission-free market

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Advisers and providers will need to be mindful of breaching regulatory rules when drawing up adviser charging contracts, an RDR paper by Deloitte warns.

As commission will continue to be payable in certain circumstances post-2012, the consultancy warns providers facilitating adviser charging will need to be mindful of their processes when determining when commission is and is not payable. While commission will be prohibited on new advised sales under RDR, it can still be paid on products arranged before the introduction of the rules as well as on protection products and execution-only sales. Commission on increments to investment products sold prior to 1 January 2013 may also be permissible. Deloitte warns the facilitation of advis...

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