When the adviser charging rules were first promulgated there was a justifiable outcry about how this would benefit bancassurers and vertically integrated businesses. IFAs were rightly concerned about the potential for abuse in the way that costs of sale were calculated: much as they had been for years.
The FSA were very clear. The rules would ensure that businesses of this kind would need to fully cover distribution costs via their adviser charges and that no subsidy from manufacturers would be allowed.
And initially this scenario appeared to play out.