Could FAMR really herald the return of commission-based selling? Adrian Boulding believes such a move could do more harm than good...
HM Treasury finally recognised that the so-called 'advice gap' (that already existed pre-RDR) has widened considerably since 31 December 2012 when it unveiled its Financial Advice Market Review (FAMR) on 3 August last year. Interestingly, the last vestiges of a pre-Retail Distribution Review (RDR) world will cease in just over two months' time on 6 April when fund-based trail commission on legacy business stops being paid. As commission income streams fell away and the increasing costs associated with the professionalisation of financial advice were felt, high street banks were quick ...
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