RDR: FSA mulls commission for basic advice for stakeholder pensions
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The FSA has revealed that it will consider proposals to allow the payment of commission on basic advice for stakeholder pension members.
In the FSA’s consultation paper on delivering the retail distribution review, it says that while commission payment on basic advice for stakeholder members will be forbidden for now, it will consider lifting the ban when it publishes the RDR policy statement at the end of Q1 2010.
The FSA says: “Respondents suggested that the current infrequent use of the ‘basic advice’ method of distributing stakeholder pensions could increase significantly if the proposal within the RDR proposals to allow commission on sales made that way was implemented.
“We will consider the use of basic advice in the wider stakeholder product marketplace.”
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Readers' comments (1)
Cynical | 16 Dec 2009 4:08 pm
Five years to reach what we all knew at the time!!!!
Lord help us, how much has it cost, and who pays in the end, the very people in whom this lot were meant to "build confidence"!
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