View more on these topics

&#39Consumers do not know they pay IFA commission&#39

Many consumers do not understand they pay for their advisers&#39 commission through charges, believing providers pay the costs of remuneration, according to Ron Sandler.

Responding to IFA questions in this week&#39s Money Marketing, the man heading the ongoing review into medium-term and long-term savings, which covers the impact of commission bias, says the complexities of commission structures makes it difficult to determine what is being paid.

Responding to a question by Simpsons partner Andrew Merricks on why commission disclosure has failed to bring down commission levels and push consumers towards fees, Sandler says: “It seems that at least part of the explanation lies in the fact that many consumers do not seem to understand that in the end they pay for commission and believe that these costs are borne by the provider.

“It is clear that disclosure per se is of limited value unless it is accompanied by real consumer choice and we are still investigating to what extent consumers appreciate their choices post-commission disclosure.”

Sandler&#39s responses represent the first time since the consultation paper was released in July that he has communicated directly and publicly to IFAs.

Sandler review, p14-16


Sandler responds to IFA community

Q: Was commission disclosure not introduced to bring transparency to the general public when purchasing a product? Why, in your opinion, has this not worked in bringing down commission levels and driving more of the public towards fees?A: I would start by pointing out that commission levels are driven by a range of forces, of […]

Man peers over the hedge

Man Investment Products has unveiled Man multi-strategy series 3, a fund of hedge funds that is structured as a capital guaranteed bond.The bond is based in Bermuda and investors can choose between dollar-denominated bonds, euro-denominated bonds or a mixture of both. They are guaranteed at least the return of their original capital and if the […]

EU may force FSA regulation of all insurance advice

The FSA could be forced to regulate advice on all insurance products if the Government fails to negotiate a UK exemption from a directive currently before the European parliament.The Insurance Intermediaries Directive says all intermediaries must be statutorially regulated, including those who sell private medical insurance, critical-illness cover, income protection and general insurance, which are […]

Personal numbers

Starting life as a husband and wife partnership run from home, IFA network Berkeley Wodehouse has in 10 years grown to become BWA Holdings plc with a turnover of £10m a year and a target of an Aim listing by the end of next year.Set up in 1992 by Val and Michael Gaze, the network […]

A guide to automatic re-enrolment

Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm