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&#39Inequitable&#39 proposals are blasted by Bankhall

Bankhall has branded the FSA&#39s defined-payment system as pointless and confusing in its formal response to the FSA&#39s consultation paper on polarisation.

The IFA services provider argues there is little need to change the way that IFAs operate and that the current commission disclosure regime introduced in 1995 means consumers are made aware of the cost for advi-sing on and arranging the sale of packaged products.

It goes on to brand CP121 “inequitable” in that it gives IFAs far harsher treatment than tied salesforces.

Bankhall proposes that IFAs should be obliged to give customers the choice of paying fees or commission at the outset of the meeting.

Although Bankhall says it accepts the problems with the current polarisation regime that CP121 identifies, it proposes compulsory gap-filling for tied agents so they can offer a product suitable for any need.

Bankhall says that, as a minimum, product providers should be compelled to offer all their products through any sales channel they support rather than offering a full range of products to IFAs but only their most profitable products through their own registered individuals.

The company also warns that the FSA&#39s definition of an IFA as set out within the CP121 document is out of step with European Union legislation and that measures must be taken to ensure that unfair advantage is not given to advisers from other European Union countries selling within the UK.

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