The Financial Services Authority (FSA) has expressed concerns about the use of distribution deals to circumvent rules banning the payment of commission.
With the retail distribution review (RDR) set to ensure that firms can only be paid through adviser charging, the FSA said it had already detected some providers "soliciting or providing" payments intended to seek the same outcome as commission. In its latest RDR newsletter, it said: "Clearly such arrangements are not in the spirit of what we're all working so hard to achieve. "We are concerned that non-commission payments and benefits may be indicative of firms seeking alternative ways to preserve features of the market that the RDR intended to address. "We have always said that w...
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