The FSA has issued its latest design brief for the FS 'market', called the Retail Distribution Review - 'RDR' for short.
It's flawed. Why? Because it is impossible to design a free market. The RDR is just the latest iteration of the FSA's (the Government's poodle / attack dog) manual for more nationalisation lite.
Anyway, if you want to 'reform' distribution of product it can be set out on one side of A4. Tabulate the differences between those distributors who are the agents of the client and those who aren't. This will mean that all IFA's will be on one side and everyone else (Banks, Building Societies, Insurance and Investment companies etc) on the other.
Make it clear to everyone that IFA's sell advice, not product, and that products will occasionally be supplied as part of that advice. Secondly make it equally clear that every other market participant is selling product and that buyers should beware - caveat emptor applies. Thirdly make it compulsory to disclose the true full costs of distribution and commission on all product sales.
The essential message is that every product seller who is not the client's agent is not to be trusted and their product recommendations should be viewed with suspicion.
I mean, how hard can it be?