There has been outrcry in the Financial Services Industry after athe industry regulator, the Financial Services Authority, told a financial adviser in London that his fees at £150 per hour were too high.
No detailes were published in industry news or papers as to who the financial adviser was.
Our View
This is quite ridiculous!
The FSA has no right to tell a firm what they can or cannot charge. The public always have the right to vote with their feet if they think any company, irrespective of industry, charges too much.
Why should financial services be different? Whilst charges nowhere near that figure for fee based advice, even at £150 per hour for a London based adviser with much higher business expensese it is still probably much cheaper than the equivalent rate if being paid on a commission basis.
Yet we do not see the FSA tackling insurers who indeed are the biggest beneficiaries of high commission paying plans, Bank and Building Society based advisers.
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