FSA ban on DFM-to-adviser kick-backs queried

Last month, the FSA opened a consultation on a change to its adviser charging rules to ensure advisory firms do not receive any kick-back payments from DIMs in exchange for recommending their services. According to the proposals, payments between a DFM and an adviser will not be permitted if the adviser has an ongoing relationship with the client that may involve the recommendation of retail investment products. However, if an adviser is simply introducing a client to a DIM, and from that point is no longer involved in making retail product recommendations, an 'introductory' payment f...