New rules to safeguard clients over commissioned advisers

A BAN on commission payments for giving financial advice to Islanders will be among a new series of investor protection measures to come into force 14 months from now.

JFSC securities deputy director Mike Jones
JFSC securities deputy director Mike Jones

A BAN on commission payments for giving financial advice to Islanders will be among a new series of investor protection measures to come into force 14 months from now.

The Jersey Financial Services Commission says that the ban will reduce the risk of skewed advice being given by people driven by the motivation of a payment for directing someone toward a particular firm or product.

The new rules will also require financial advisers to hold certain qualifications if they are to continue to provide advice to Islanders.

The new regime, entitled The Review of Financial Advice, will come into effect on 1 January 2014 – a year after the UK will bring into effect its version, named The Retail Distribution Review.

Comments for: "New rules to safeguard clients over commissioned advisers "

Rentokil

Brilliant news.. Shame it's going to take that long though!!!

Folk, be very weary of things in the meantime, management with targets to meet may push this to the hilt and take advantage of many in the meantime!!!

Tom Jones

It will put a lot of thick IFAs over here out of business. That's a good thing.