Inter-Alliance welcomes FSA's abolition of polarisation regime

Leading IFA group Inter-Alliance has welcomed the FSA's announcement that it will proceed with the abolition of the polarisation regime.

The IFA group said it viewed the FSA decision as "positive and beneficial".

While it warned the decision might put stress on smaller IFAs, it said the larger IFAs will thrive in the mass market.

Chairman and Chief Executive of Inter-Alliance Keith Carby said: "Inter-Alliance Group whole-heartedly welcomes the decision by the FSA to bring to an end the polarisation regime.

"We believe this decision, tied with the "menu" approach for IFA remuneration, which emerged during the consultation period for CP121 will enhance the prospect for the larger IFA organisations.

"With the UK population getting wealthier and the well documented short-fall in long-term saving provision, independent financial advice has never been more vital than it is today.

"To meet these challenges, IFAs must attract investment, promote excellence of advice and most of all, and become big business."