UK financial outfit Hargreaves Lansdown is currently reflecting on the retail distribution review draft proposals announced by the Financial Services Authority (FSA). As we covered in one of our earlier post, these draft proposals could see the abolishment of commission only transactions and force investors to pay fees upfront either as part of their investment or as a one-off payment.

While Hargreaves Lansdown sees no major change in its overall business strategy and business income, it is contemplating effectively splitting the business in two with execution only and advisory services operating as separate entities. There is also the potential to become part of a larger financial institution therefore eliminating the "independent advice" tag which has been so profitable for many in the sector for so long.

While these are just initial comments and thoughts from the management of Hargreaves Lansdown there is no doubt that changes are afoot in the UK financial sector. Aside from the fact that regulatory powers will be increased there is also the onset of a major review of the commission sharing basis on which so many businesses operate. It is difficult at this moment in time to contemplate how the situation will pan out but the UK financial landscape could be about to change forever.

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