The Consumer Panel has had lengthy discussions with the FSA over its decision to overhaul the way that financial advice has been structured (known as polarisation). It has formally responded both to Consultation Paper 121 overall, and specifically on Chapter 5 of CP121.

Now that the FSA has announced its formal decision in favour of depolarisation, there will still be further consultation on the rules and regulations, on which the Consumer Panel will express its views.

So far, the Panel has welcomed the "menu" option announced in November. The 'menu' is in line with the Panel's response to the CP121 consultation. It will require advisers to set out clearly the services they provide and to give consumers a clear understanding of the cost implications of choosing commission based or fee based payment.