Rule Change for Financial Advisers
New rules come into force ending polarisation
1st December 2004
New rules come into force today governing the products financial advisers are allowed to sell.
Previously, any adviser working for a bank or insurance company could only sell products offered by their employers, compared with Independent Financial Advisers, who were free to offer any product on the market.
The rule change is aimed at increasing choice for customers, many of whom were unaware of the distinction between employed and independent advisers.
Under the new rules, a customer should be given a clear choice between the employer's products - for which a commission will be paid, as usual - and products from the open market, for which the customer will pay a fee to cover the lost commission.
Read More: BBC Report
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