PFS backs FAMR commission solution that already exists

Way to avoid big upfront costs

Laura Miller
clock • 2 min read

A solution to the problem of people not being able to pay upfront for advice already exists without the need for a mooted return to "old-style" commission, the Personal Finance Society (PFS) has said.

Financial Conduct Authority (FCA) acting chief executive Tracey McDermott refused to rule out a return to product-based commission as part of the regulator's Financial Advice Market Review (FAMR), an investigation into how advice can be made more accessible for those on lower incomes. Product-based commission was banned in 2012 as part of a wide-reaching overhaul of financial advice aimed at dramatically reducing bias in the sector, the Retail Distribution Review (RDR). But the PFS said a solution that has the benefits of commission without the biases already exists as an answer to FA...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Majority of un-advised with stock investments have no financial plan

Majority of un-advised with stock investments have no financial plan

‘Many are realising the need for expert financial support in later life’

Hope Coumbe
clock 12 June 2024 • 1 min read
Financial wellbeing — what are advisers and planners measuring?

Financial wellbeing — what are advisers and planners measuring?

'Money should be our servant, and not our master'

Chris Budd
clock 12 June 2024 • 3 min read
Targeted support could lift 5 million people out of advice gap

Targeted support could lift 5 million people out of advice gap

‘Targeted support could move the dial and present business opportunities’

Isabel Baxter
clock 12 June 2024 • 1 min read