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

Andrew Goodwin: It's time for advisers to think differently about innovation

Andrew Goodwin: It's time for advisers to think differently about innovation

'Ours is still a profession that rightly places enormous emphasis on the human touch, relationships and trust'

Andrew Goodwin
clock 04 July 2025 • 4 min read
Altus' Holford urges advisers to reframe concept of advice gap

Altus' Holford urges advisers to reframe concept of advice gap

Traditional models of value, service and delivery are being challenged

Sahar Nazir
clock 04 July 2025 • 2 min read
PA Asks: Do you keep in touch with clients when on holiday?

PA Asks: Do you keep in touch with clients when on holiday?

Plus, targeted support worries and BDMs

Professional Adviser
clock 04 July 2025 • 1 min read