The regulator says it is consulting on a change to the rules, though it has already made its intention clear on the subject in its March 2010 policy statement (PS10/6).
This stated that adviser firms “should not be allowed to receive commission set by discretionary investment managers for recommending their services, just as they cannot receive commission set by product providers for recommending their products”.
Under RDR adviser charging rules, the FSA says IFA firms should only be paid for the personal recommendations and related services they provide to their clients through the charge agreed with their client.
The ban on referral payments will apply to referrals of new clients only, from 31 December 2012 onwards.
