The CEO of Guardian Wealth Management, David Howell, has said new rules handed down from the Financial Services Authority could benefit financial firms that switch their focuses, an article on Out-Law.com says. Firms can no longer make commissions from companies after selling their product to a client.
In the hopes of transparency, the United Kingdom’s Financial Services Authority took away a financial company’s right to commission paid by companies after recommending their product. There are still ways for the financial company to make the commission based on asking a series of questions, but flat-out recommendations in the hopes of making a commission are no longer allowed. The Retail Distribution Review will hopefully encourage financial services companies to provide their clients with products that are better served to fit them.
The Financial Services Authority felt this was the best move to protect the consumers. The board was worried that with a lack of transparency, some financial firms may have been offering the products of those companies that paid the best commissions instead of giving customers what was the best fit for them. Now, the focus is more on ensuring a good fit for the client.
David Howell is the CEO of Guardian Wealth Management and believes this is a great opportunity for companies to branch out and embrace an entrepreneurial nature, an article on Out-Law.com reports. Many owners of small and medium businesses are looking to cash in on their investments and give up control of the business. Howell said the new landscape could allow financial corporations to focus on their corporate financial planning propositions. He knows some firms have been focusing on this for a while, but now more firms can get into this area and create a good market out there for sellers. If the financial firms commit to more of this work, they can also take a little more risk when looking for a reward.
Howell, an entrepreneur himself, hopes this spurs a lot of creativity in the financial sector of the United Kingdom. He began his company when he was just 18 years old and eventually went international, rebranding it Guardian Wealth Management. He has put offices in multiple countries, most recently expanding to the Middle East in 2009.
Guardian Wealth Management is not backed by any parent banks or financial institutions. This allows the company to offer financial solutions that are the best for the customer, not a corporation.