Contingent charging ban won't ease conflict concerns - PA360 told

No preferred charging model

Hannah Godfrey
clock • 1 min read

Banning contingent charging will not solve existing concerns about conflicts of interest in financial advice and could end up doing more harm than good, Tom Hegarty warned delegates at PA360.

Speaking at Professional Adviser's flagship conference PA360 this afternoon (25 April), the director of The Advice Partnership from Prudential argued banning the adviser charging method could be detrimental to consumers. "The FCA has said there is an inherent conflict of interest when firms use contingent charging structures," Hegarty (pictured) said. "In my opinion, however, banning the use of contingent charging will not make any difference to conflicts of interests that already exist, and could have a detrimental effect on customers seeking advice who can't afford to pay a fee." Pr...

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