The protection industry has welcomed the move by the Financial Services Authority (FSA) not to apply adviser charging to pure protection advice as part of its retail distribution review (RDR) proposals.
The City regulator announced in its latest RDR consultation paper that "adviser charging should not apply" to the sector. Margaret Craig, acting director general of the Association of British Insurers (ABI), said she was pleased the FSA has accepted its argument that adviser charging should not be applied to the protection market "purely for the sake of consistency".
Roger Edwards, products director for Bright Grey, said: "We took part in research that the ABI did and we did some of our own. Quite early on it came quite obvious that people would pay a fee for pensions or investments but there was no desire to pay for advice for protection products."
Mr Edwards also said that keeping commission on protection safeguards the protection market .




