FSA warns firms not to 'work around' commission ban

The Financial Services Authority (FSA) has written to the CEOs of 24 product provider and advisory firms warning them not to 'work around' the Retail Distribution Review (RDR) commission ban.

It is concerned that firms may bypass the adviser charging rules by soliciting or providing payments or benefits. The regulator said its supervisory work had alerted it to moves in the market which "could undermine the RDR adviser charging provisions and also unfairly disadvantage those advisers who are working hard to treat their customers fairly and prepare for the upcoming changes". "This might mean that advisers continue to provide 'biased' advice to consumers (when recommending a product provider) and also make some firms' adviser charges look lower than others simply because of ...