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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Owning the 'why?': Verona Kenny reflects on six months at Aberdeen Adviser

Owning the 'why?': Verona Kenny reflects on six months at Aberdeen Adviser

'We need to be consistent. We need to get the basics right every single time'

Verona Kenny
clock 01 May 2025 • 4 min read
Fairstone refines buyout terms to focus on high-growth potential IFAs

Fairstone refines buyout terms to focus on high-growth potential IFAs

Updated DBO model to ‘support increased valuations’

Jenna Brown
clock 30 April 2025 • 2 min read
L&G drops fracture cover in critical illness and income protection overhaul

L&G drops fracture cover in critical illness and income protection overhaul

Increased pay out amounts

Jaskeet Briah
clock 29 April 2025 • 3 min read