Ron Sandler has described stakeholder as a straitjacket but suggested that it is encouraging a move to fees and trail-based commission among IFAs.
He conceded that the industry was suffering from review fatigue and accepted that there were obvious dangers of duplication with the other reviews into the industry being conducted by the FSA, Penrose and Pickering. His review was the overarching review which would draw upon the work done by the others in an act of “joined-up thinking”.
Defending the independence of his review, Sandler said he would not shy away from criticising the Government's policies.
He said he was determined that his review would be a consultative process, inviting IFAs not to see him as the enemy but to communicate with him.
Sandler said: “The role of IFAs has changed and I do, of course, observe the trend towards fees, trail commission and commission neutralisation.
“Perhaps this has been prompted in part by the imposition of the stakeholder straitjacket but nonetheless change is taking place.
“I do know that the uncertainty arising from reviews of this nature can have a paralysing effect on the industry.”