Holland to ban commission in RDR-style reform
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The Dutch government is to ban commission on financial services products and force banks and independent advisers to be more transparent about costs, echoing the FSA’s retail distribution review.
From January 1, 2013, inducements and commission paid to advisers and banks from investment funds will be banned. In a move that goes further than the RDR, commission will also be banned on mortgages and protection products from the same date.
Bank advisers and independent advisers will be subject to the same requirements. Financial advisers who operate on a fee-based model, either on an hourly rate or a fixed fee, will be monitored to ensure the cost of the advice service is reasonable.
Minimum qualification requirements were introduced for Dutch advisers in 2006, although discussions are taking place over whether this minimum level should be increased further.
Financial planner and asset manager William van der Maas says: “This is part of an ongoing process that started in 2006 after seven million high-cost insurance policies were sold to consumers. It was a huge scandal and now the government is trying to clamp down on this kind of behaviour.
“A big part of the market here is driven by mortgage and insurance sales, with a smaller number of investment sales. Advisers’ models are largely based on commission, so this will mean big changes for those advisers.”
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Readers' comments (12)
Nick Howarth Pulleyn | 27 Apr 2011 1:09 pm
Presume you mean "The Netherlands" rather than just "Holland"?
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Patrick Schan | 27 Apr 2011 1:12 pm
Another stupid bunch of politicians. This only goes to prove that idiocy can be contagious
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Dominic Thomas | 27 Apr 2011 1:38 pm
So we won't be going Dutch then? Surely its more than a "step too far" when Governments start attempting to fix fee levels...
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Anonymous | 27 Apr 2011 1:49 pm
Dominic
Yes it is a step too far.
If this is what they intend to do, commission should simply have been capped.
Who is monitoring the regulators and politicians to ensure they are value for money? Apart from the Telegraph that is.
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Anonymous | 27 Apr 2011 2:22 pm
Next step, Communism !
Let's be straight, politicians think that they are a breed apart. They are, but not in the way they like to think of themselves.
They **** up everything, destroy the economy, make illegal wars, line their own grubby pockets, and then feel snubbed when they don't get an invitation to the wedding.
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DH | 27 Apr 2011 2:23 pm
is there something in thier cigarettes ?
Tell you what, why dont they ban financial advice altogether
No more pay, no more bad advice, no more compensation, nothing to regulate, no one will be able to retire, no one will be able to die, no one will be able to get sick, the state will provide for all good old uncle Ivan !!!
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Phil Billingham | 27 Apr 2011 2:48 pm
So that's the UK, Australia and the Netherlands so far, with South Africa and India on the way.
The USA is looking at the whole issue of Fiduciary Duty.
Is there a trend here.......?
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Simon Mansell | 27 Apr 2011 3:11 pm
The International Court of Justice is based in the e in The Hague, Netherlands..... and tell me do you think the Dutch will apply their RDR rules retropsectively or will they have more respect for the rights of their citizens?
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Michael Fallas | 27 Apr 2011 3:27 pm
Fools
Funny how they don't apply the same rules to themselves. Imagine what MP's would do if they were responsible for the all the legislation they force up us for the rest of their lives and also they had to pay compensation to everyone when things go wrong.
I know of no other industry that is being hounded like ours.
Easy targets, poorly organised and badly represented by AIFA and others.
Time to play had ball and make those who rule over us apply the same rules and regulations to themselves.
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Sean | 28 Apr 2011 8:38 am
two wrongs dont make a right!
Are they going to ban commission on cars, coffee, baked beans etc because when I purchase something from a shop I don't get a bill showing a breakdown of the cost of the goods and then the costs of the service to provide me with those goods?
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