The way financial advice is given has changed in one of the biggest shake ups to the sector for many years.

Financial advisers have traditionally been paid a commission for recommending a particular product but that will be no more. The FSA has banned commission payments and introduced a different system of remunerating financial advisers from Jan 2013.

Steve Wise, Senior Claims Adviser at Credit Claims says, `We welcome the changes being introduced, I just cannot believe it has taken so long for the regulator to realise something needed to be done to protect consumers. We see so many people who have suffered losses on their investments because of unsuitable products, often as a result of commission driven financial advisers` The Retail Distribution Review (RDR) will see all sales of investment products like ISA`s, Unit Trusts and Investment Bonds subject to a more rigorous process. Any financial adviser will need to be qualified to the national Qualifications and Credit Framework Level 4 as a minimum. A new code of ethics has also been introduced leading to an annual `Statement of Professional Standing` which each adviser must attain to give advice.

Consumers will now agree in advance how they wish to pay for advice. They can choose to pay a fixed upfront fee, an hourly rate which could be £100 per hour or more or an ongoing monthly retainer. Other options are also available.

Only those advisers who have access to products across the whole of the market can call themselves independent. All other advisers will have to disclose exactly what they can and cannot offer in terms of products available. Some may for example be able to only offer the products of one company and will have to make that clear to their customers.

Steve Wise says `In our experience it is the highest commission paying investments that are often mis sold to customers. In the past many advisers may have been tempted to recommend an unsuitable product because of this, and we have to deal with the fallout. Hopefully taking commission out of the equation we should see a reduction in the number of mis sold investments` Credit Claims has been Highly Commended for Customer Excellence in the last two years of the Bolton and Bury Business Awards. The company employs ten advisers helping clients with investment claims, ppi and mis sold mortgages.