FSA clarifies client money rules on fees

The FSA has confirmed that commission rebates to clients who pay fees for advice will remain outside...

The FSA has confirmed that commission rebates to clients who pay fees for advice will remain outside the client money rules. The guidance comes in the latest newsletter on progress towards depolarisation that comes fully into force on 1 June. Financial advisers who operate as independents will have to offer clients the option of paying by fee. Under polarisation, much intermediary business was paid for by commission meaning client money rules were not invoked. A client would write a cheque to the product provider who, in turn, paid commission to the adviser. At no point did the firm hol...