VAT on financial advice

I'm closely related to a financial advisory firm and (as you may or may not know) in Jan 2013 IFA firms will not be able to accept commission for inve stment sales made resulting from their advice, so they will have to charge the client a fee. This fee can either be paid by a client's cheque or indir ectly from a product provider where a client fee arrangement has been previ ously set up with the client's agreement. This latter is still a fee, howev er. This firm of IFAs has several advisers, some of whom are what are known as Appointed Representatives (ARs), which is a regulatory term which enables t hem to operate rather independently (their own name and notepaper, for inst ance) but still under the regulatory processes of the Principal Firm. If the Principal Firm becomes VAT-registered (because not all fees will be VAT-free, depending on how they arise) how will this affect the ARs. They w ill have individual costs on which they may or may not be able to reclaim V AT, but won't be individually registered.
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