The FCA has announced that financial advisers will have to pay less than originally proposed for funding the new pensions guidance service.

The regulator has said they will receive a 50% reduction after accepting the argument that advisers would be less likely to benefit from the service.
Initially it said the A13 funding block comprising advisory arrangers, dealers or brokers would pay 30% but this has been altered to 12%.
The move follows a consultation.

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In its report the FCA said: "We accept the point made by respondents that financial advisers will only benefit if, following using the pensions guidance service, consumers seek
advice from regulated financial advisers.
"We also accept that it is clearer that 'product providers' in the other fee-blocks are more likely to benefit as the monies (if used for investment) released through greater pension flexibility will be distributed amongst them.
"We acknowledge that the majority of respondents favour an allocation basis that would reflect what retirement financial products and services consumers are choosing but also that such data is not available at this time and is likely to be challenging to obtain in the future.
"We are therefore proposing to consult on an equal allocation across the five pensions guidance fee-blocks with a 50% reduction for A.13 to reflect that financial advisers have less potential to benefit than the product providers in the other four."

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