FSA details the enhanced standards people can expect from all investment advisers

The UK FSA has published proposals which they say are to build people’s trust and confidence in the retail investment market. The changes, which will take effect from the end of 2012, are aimed at improving outcomes for savers and investors by enhancing the quality of advice they receive, and prepare both consumers and the industry for the future.

In particular, the FSA is consulting on rules to ensure that:
· Independent advice is truly independent and reflects investors’ needs;
· People can clearly identify and understand the service they are being offered;
· Commission-bias is removed from the system – and recommendations made by advisers are not influenced by product providers;
· Investors know up-front how much advice is going to cost and how they will pay for it; and

All investment advisers will be qualified to a new, higher level, regarded as equivalent to the first year of a degree.

The developments are likely to have an effect in Asia as the SFC in Hong Kong typically watches closely the developments in the UK.