FSA provides situational guidance on commission rules

The Financial Services Authority (FSA) has published a consultation paper: Distribution of retail investments: RDR Adviser Charging - treatment of legacy assets, that provides guidance on which situations will be affected by the post-RDR ban on legacy commission. 

In response to an industry request, the paper features a table which lists typical situations where recommendations are made and identifies whether these will be considered to be advice on investments under article 53 of the Regulated Activities Order. If the answer is 'no', the RDR ban on commission does not apply as it is not considered to constitute advice. If the answer is 'yes' however, additional commission cannot be paid if the personal recommendation was made post-RDR.

The table, found in Annex B of the paper Distribution of retail investments: RDR Adviser Charging - treatment of legacy  is shown below:

SOURCES: http://www.fsa.gov.uk/pubs/cp/cp11_26.pdf

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