Two ways to cut the cost of investing

Investing can be a costly business, so the FSA's proposed ban on independent financial advisers charging commission is good news for private investors. Ruth Jackson outlines the new rules, explains where to find genuine independent advice, and reveals two ways to cut the cost of investing.

News that the Financial Services Authority (FSA) wants to ban independent financial advisers (IFAs) from charging comission should be met with whoops of joy by private investors.

For now, an estimated 80% of advisers' payments come from commission, received from financial firms when they get their clients to invest in them. Critics have long argued that this leads to "commission bias" whereby 'independent' advisers are tempted to recommend the products that pay them the biggest commission, not the ones that are most suitable.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.