Consumers warned on ‘financial advice subscriptions’

Consumers have been warned not to take out unnecessary ‘subscriptions’ for advice offered by financial advisors.

The financial services watchdog AFM says consumers should be careful not to pay twice for the same advice.
Banks and intermediaries have been banned from charging commission on complicated financial products since the beginning of January. Instead, customers will pay a fee for financial advice up front, irrespective of whether they buy a product or not.
However, television show Radar reported on Monday evening a number of financial advisors are now offering their clients a ‘service subscription’ for advice. In some cases, this covers advice which has already been given.
This is the second time the AFM has issued warnings about the commission ban. Last week it said Rabobank may be breaking the law by offering clients advice on a ‘no cure no fee’ basis.
The AFM says it is not against a subscription in principle but says advisors have to give clear information to clients about why it would be useful and what it covers.

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