In, about 2001, one of the first things that the newly created Financial Services Authority did was to produce CP121, a discussion paper on the future of financial advisers.  Controversially, it was proposed that Independent Financial Advisers be paid by fees.  This suggestion followed two scandal ridden decades of mis selling, poor regulation and dreadful product design, leaving the industry at a low in terms of reputation and morale.  Presented with this priceless opportunity for reform, the vested interests, including the insurance companies, AIFA (erstwhile representatives of the advisers' interests) and most IFA firms fought tooth and nail to prevent one jot of it being implemented.  This impassioned attempt to stymie progress was largely successful and the intervening years have seen much continue in the same unsatisfactory way as before.

Not all remained in the status quo ante, however.  Some advisers took their cue from the regulator and changed to a fee model and , having had a sniff of what might be, the press, the Consumers Association and many MPs remained unhappy.  Pressure for reform continued.

This year, the FSA released the Retail Distribution Review and most believe it will not be thwarted a second time.  It very much looks as if genuine advisers, as opposed to salespeople, will be required to adopt a fee charging model.  The vested interests arraigned against it are very much less united and less significant in size.  The insurance companies are by no means completely opposed and many are changing their proposition, perhaps humbled by the evidence that paying commission for the sale of policies actually loses them more money than it raises.

It is looking very likely that we will have better qualified, professional advisers in just a few year's time.