The FSA have “listened” to the market place and moved away from the Chartered / GP / Primary Advice model. A full feedback statement due out October 08.
A copy of the paper may be found at http://www.fsa.gov.uk/pubs/discussion/rdr_interim_report.pdf
There is a linkage with the paper on PII and Capital adequacy.
New FSA “big idea” :
Advice [Independent / whole of Market / remuneration not set by product providers – but only requiring AFPC / Diploma standards]
Sales – Tied / Multi ties / non advised sales. Can expect more guidance on non advised sales.
Money Guidance – [not an FSA regulated Activity]
Challenges that the fsa are setting the industry :
- Product Providers design better products
- Industry develop framework for professional standards
- Industry to develop new sales services that deliver better customer outcomes.
FSA have not ruled out that this concept could be extended to Mortgage business too.
Grandfathering will not be permitted this time.
