The Financial Services Authority (FSA) has proposed new guidance outlining how product providers can facilitate the payment of adviser and consultancy charges to intermediaries.
In CP 11/25, the FSA suggested two methods of facilitation, which is where a client pays their investment to the provider which then pays the adviser their share on the client's behalf. The draft guidance said the following methods of facilitation are acceptable: Paying the full amount received from the customer into the product and then deducting the amount (or amounts) of the charge from it; Deducting the initial charge from the amount received from the customer and then paying the remainder into the investment product. The guidance also sets out ways in which advisers c...
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