The way UK fund managers distribute their services to the retail market is likely to change significantly after the Financial Services Authority (FSA) acknowledged that consumers are suspicious of IFA commissions.

IFAs, or independent financial advisers, have become the principal route for many fund managers, banks and insurance companies to sell their products to the retail market in the UK. Although they are independent of the providers, they get commissions from them. This is usually the IFAs' only source of income. If providers want to push a particular product, they pay more commission on it.