Regulatory Alerts2019-12-12
Retail Distribution Review Proposal TT on Remuneration for Low-Income Savings and Investment Products
The Financial Sector Conduct Authority proposes a special remuneration dispensation under Retail Distribution Review Proposal TT that permits intermediaries to retain commissions on qualifying low-income savings and investment products without charging separate advice fees. The proposal establishes monthly and single-premium contribution thresholds, expands the FAIS Tier 2 product classification to include additional collective investment schemes and retirement funds, and caps effective annual costs at specified intervals to ensure fair value. By limiting the Tier 2 fit-and-proper dispensation to retail-facing advisers and maintaining current commission regulations, the FSCA aims to prevent an advice gap while promoting financial inclusion for underserved low-income consumers.