It is widely accepted that electronic trading will drive significant costs from the Financial Services industry, perhaps more than £1bn according to some estimates.
Advisers have hit back at the Financial Services Authority over its attack on the financial services retail distribution model.
The Financial Services Authority has attacked the retail financial distribution model for being unreliable, untrustworthy and failing to establish long-term relationships.
Firms have a long way to go before they can prove they are treating their customers fairly, says Stephen Bland, retail intermediaries sector leader at the Financial Services Authority.
Provider Standard Life is introducing lower commissions to head off "unsustainable" payments in light of what it sees as industry moves "away from generic pricing, with terms increasingly being driven by the nature and quality of the business".
The Treasury Select Committee's report into the long-term savings so far to suggest the very existence of IFAs may hinder rather than help improve consumer confidence in long-term products.