At present, paying for financial advice can be more than a little perplexing. As it stands, the majority of advice is paid for through a commission, this means that whilst it may appear that the advice is free, it isn’t. This puzzling situation can arise because there is no need to part with any money up front when getting your finances reviewed, and what will be paid in the future can sometimes be obscured by complex and confusing product charges.
This has all changed, as from January 1, 2013 financial regulators introduced a new regulation which simplifies the way financial advice is paid for. The rules have been brought in to make it clearer for clients to see exactly what they are paying, however, this may mean laying out a larger upfront sum. These changes are part of the Retail Distribution Review (RDR), a consumer protection strategy that has been set up to establish a retail investment market in which consumers will have confidence through a time when they need more help than ever, whether you are looking to insure your practice or preparing for retirement.