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.
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.
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