The FSA believes there is there is no consumer detriment in allowing advisers who operate under COBS rules to maintain their current commission based charging.
The regulator made the statement in its Consultation Paper 10/8 which examines the potential impact of the Retail Distribution Review (RDR) upon pure protection sales. In explaining its proposal to allow advisers to continue selling protection products using commission based payments under Conduct of Business Sourcebook (COBS), it said: "The differences between the Conduct of Business Sourcebook (COBS) and Insurance Conduct of Business Sourcebook (ICOBS) rulebooks are limited (with the exception of Adviser Charging) and many firms successfully operate both regimes at present. "However...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
