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...

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