Abstract
After two years of research and initial consultation, the Financial Services Authority (FSA) has published its proposal (Consultation 121) to reform the polarisation regime that applies to financial advice in UK. The goal is to introduce greater competition and provide customers a better deal when they seek advice. The proposal, slated to be ready in October 2002, will create seismic shifts in the balance of power between providers, and more so among the distributors of insurance, savings and investment products. This paper examines the new legislation and takes a comprehensive look at how the changes will affect the industry and the various parties involved. It concludes by looking at its impact on IT systems of the providers and how technology can help in delivering better and secure services in accordance to the emerging distribution model.

Author Umesh Kumar Rai

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