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Commission can stay for protection business

Advisers and insurers are relieved at the FSA’s decision to allow commission to remain for protection products.

In the retail distribution review consultation paper, the FSA says it will not introduce adviser-charging for protection but will require firms to disclose a commission payment where pure protection is sold at the same time as investment advice.

Axxis Financial Planning dir-ector Owen Wintersgill says: “It is good to know that the regulator and all parties concerned are finally realising that some financial services products such as protection are absolutely sold, not bought. Removing commission would be completely counter-productive and nobody would pay a fee for advice on protection.”

P3 Wealth Management managing director Frank O’Donnell says: “If they had to pay a fee for protection advice, the chances are that the consumer would not take a policy out so for that reason, it makes a lot of sense.”

However, Calculis director Alex Pegley says banning commission should apply to protection. He says: “If we are going to do this, then let’s all go down the adviser-charging route. It is a further watering down and the regulator has obviously been lobbied by some groups. They should just scrap commission.”



Cutting Cru

Some people will remember that we were the subject of extreme acrimony from Jon Maguire because we refused to sell Cru funds. People are asking me am I gloating because I was proved correct? I must say that the performance of the Cru funds had no ring to it to me. ow could unquoted investments […]

Barclays Wealth releases next plan in target growth series

Barclays Wealth is reissuing its target growth plan structured product with changes to its payoff and capital protection structure. The product, which has a five-year term, offers investors a fixed return of 50 per cent at maturity, as long as the FTSE 100 index has traded at or exceeded its starting level at any point […]

IFAs used as ‘pawns’ in expat fraud

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Singapore cover image - thumbnail

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