Some people may think that financial adviser (IFA) commission is being banned come 1 January 2013. This is a point that is easily misunderstood.

From next year the Retail Distribution Review (RDR) will come into effect and will require financial advisers to agree a charge for their work with their client. The way in which that charge is taken is up to the adviser and the client to agree upon. They could decide that it makes sense to take this from the product, otherwise known as commission. Or they may decide that it is better for the client to pay them by cheque or bank transfer etc. for the advice.

The fact that the charges for financial advice or implementation can still be taken from the product, just like commissions are now, leads me to suggest that commission will certainly not be banned from 1 January 2013, they will just continue to be taken in a different way to before, with a higher level of disclosure than has been required of advisers in the past.

The true cost of financial advice is always something that is easily misunderstood so if you do have any questions feel free to contact us.

Investor Profile Contact Details


Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on