The FSA believes there is there is no consumer detriment in allowing advisers who operate under COBS rules to maintain their current commission based charging.
The regulator made the statement in its Consultation Paper 10/8 which examines the potential impact of the Retail Distribution Review (RDR) upon pure protection sales. In explaining its proposal to allow advisers to continue selling protection products using commission based payments under Conduct of Business Sourcebook (COBS), it said: "The differences between the Conduct of Business Sourcebook (COBS) and Insurance Conduct of Business Sourcebook (ICOBS) rulebooks are limited (with the exception of Adviser Charging) and many firms successfully operate both regimes at present. "However...
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