Disclosing a ‘market average' of commission charges when providing a menu to clients could have an impact on whom advisers do business with in future, suggests Scottish Life.
Aegon has voiced its approval to the feedback, policy statement and implementation of the financial advice depolarisation advice 'menu', released by the FSA yesterday.
Clerical Medical is hosting series of national roadshows early in 2005 to help financial intermediaries prepare for introduction of the financial advice menu in June 2005.
Chapter five of the depolarisation policy statement reveals changes to the Financial Services Authority's cost benefits analysis after receiving responses to CP04/03 and which increase the overall cost of the financial advice depolarisation process....
The FSA has mapped out various structures designed to help firms ensure they are compliant with new rules set out by depolarisation, which have to to be implemented over a six-month transitional period, starting 1 December.
Product providers are not allowed to provide 'inducements' to intermediary firms in return for secure distribution deals, says the FSA.
Tied advisers will be required to present keyfacts menu documents which include information using new 'commission equivalent' calculations, however, gathering that data and presenting it could be complex.
Several changes have been made to the format of the actual advice menu since proposals were last laid out following feedback from the industry, reveals the FSA.
All financial advisers will be required from 1st June 2005 to disclose the firm's remuneration arrangement to all clients ‘on first making contact', and present a copy of both the advice cost menu the initial disclosure document (IDD) as soon as possible....
Few changes are to be implemented from initial recommendations according to the overview section of today's Policy Statement on the menu options for advisers following depolarisation.