Independent Financial Advice

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.

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....

The Financial Services Authority has just published the final feedback and policy statement on financial advice depolarisation and implementation of the advice 'menu'.