FSA to clamp down on financial salesmen

A recent report has shown that the Financial Services Authority plans to clamp down on sales people that pose as financial advisors. The crackdown will form part of the UK financial regulator’s plan to tackle commission payments, but it may be another few years before changes are made, according to the report.

The FSA Retail Distribution Review is aimed at cutting down on mis-selling by making changes to the way that consumers pay for financial advice. At the same time it also aims to increase the standards in place amongst financial advisors. The FSA wants to also put an end to confusion by providing greater distinctions between sales people and independent advisors.

One financial advisor stated: ‘This is absolutely brilliant news. The days of financial advisers being able to rip people off and line their own pockets have come to an end. At last consumers will get full transparency, where they will see exactly how much they are paying and ensure that they get good value.’

However, an official from the Association of Independent Financial Advisors stated: ‘The term “sales adviser” only muddies the water still further and will leave many consumers none the wiser about the type of service that they are receiving.’