There had been reports last week that the Financial Advice Market Review panel were weighing up some form of commission basis as part of their recommendations.

Appearing on BBC Radio 4’s Money Box programme, Tracey McDermott, the interim CEO of the FCA was asked about this and if her mind was open to whether there should be the opportunity for commission to be earned selling investment products.

She responded: “We do not want to go back to a world where we have the problems of pre-RDR. What we do want to look at is what is the best way of delivering advice and guidance across the market.

“So I wouldn’t rule out that there may be some element of commission, but we are not going to reverse the RDR.”

Pressed by the show’s presenter to clarify her comment on commission, she said: “We would need to look at whether that is one of the options put forward.”

The FCA will be looking at all responses to FAMR carefully, she added.

Financial Planning Today contacted the FCA this morning to confirm if it was correct, as stated, that the FCA was not ruling out some form of commission basis returning to the advice market and if so, why.

FPT also asked if the FCA had concerns that this would be viewed as a move contradictory to the principles of RDR.

An FCA spokesperson responded: “We will not speculate on the outcome of the review but what will not happen is a return to commission bias.

“As part of the FAMR process we will consider all of the 290 responses to the call to inputs we have received.

“The FCA is committed to ensuring that financial markets work well for consumers.”