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&#39Multi-ties will mean a return to bad old days&#39

Data information provider The Research Department has condemned FSA

proposals for multi-ties, claiming they mean massive commission bias

on sales of financial products.

TRD, which provides information for the FSA&#39s league tables and was

inv-olved in Cap Gemini Ernst & Young research on the use of

panels for consultation paper 121, says multi-ties will not address

the problems in the industry.

The company, which has been involved in selecting networks and big

IFAs&#39 provider panels, says it has never found any evidence of bias

among IFAs but predicts that this will change under multi-ties.

Group communications director Mark Hayes-Newington says he doubts the

findings of the Charles River Associates paper for CP121 which said

there is evidence of commission bias in certain product areas.

Hayes-Newington says the research is drafted to reach a certain conclusion.

But he says even if bias does exist, multi-ties will only make the

problem worse as providers compete for distribution.

Multi-ties will result in a return to the “bad old days” before

polarisation when consumers were often not sold a good product, says


Hayes-Newington says: “If the paper is correct and there is

commission bias, multi-ties are not going to remove that, it is only

going to exacerbate that.

“People will be heavily biased and using commission to push a

particular product.”


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