View the article online at http://citywire.co.uk/money/article/a872724
FCA weighs return of financial advice commission payments
Financial Conduct Authority says commission payments to financial advisers could return on some products, three years after they were banned.
The Financial Conduct Authority (FCA) has said it could reverse a ban on commission payments for financial advice on some products as it undertakes a new review of the sector.
Acting FCA chief executive Tracey McDermott told BBC Radio 4's Money Box programme she could not rule out a return to commission on some products as part of the regulator's financial advice market review.
But she said the new review would 'not reverse the retail distribution review', the overhaul to financial advice rules implemented in 2013 which banned commission payments from financial product providers to financial advisers.
'We do not want to go back to a world where we had the problems of the pre-retail distribution review,' she said. 'What we do want to look at is actually what is the best way of delivering advice and guidance across the market so I wouldn't rule out that there may be some element of commission, but we are not going to reverse the retail distribution review,' she said.
The regulator's softening of its stance on commission payments comes as high street banks plot their return to financial advice. Santander last week outlined plans to rebuild an investment advice arm with 225 advisers.
McDermott also denied the regulator had gone soft on the banks, after a review into banking culture was dropped and the scrapping of an inquiry into allegations HSBC's Swiss private bank helped wealthy clients evade tax.
'Nothing could be further from the truth. We are not going soft on banks,' she said.
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by Gavin Lumsden on Jul 22, 2016 at 16:24