View more on these topics

Davy sees no evil in commission

Commission is not evil and should not be wiped out of the industry, SimplyBiz chairman Ken Davy told an audience at Money Marketing Live in Manchester on Tuesday.

Davy, speaking at a panel debate about the future of the intermediary, said it is not up to the FSA to decide what type of business model advisers should run, nor how clients should pay for their advice.

He said there is a role for fees and commission and provided it is made clear to the client how much they are paying and by what means, commission is acceptable.

Davy said: “It is a clear message coming out that many think there is something wrong with commission. It is not evil. Accountants, solicitors and investment banks all charge commission, although they may well have them dressed up as fees. As long as it is transparent, people can make their own judgement.”

When asked about the future of trail commission, the panel said it is here to stay.

Bankhall marketing director Richard Howells says: “I do not think there is any reason to be concerned. No other modern markets in Europe or elsewhere have put an end to trail and I see no threat to it now or in the future.”

Sesame head of proposition Alastair Conway says: “I think that client segmentation is key. The mass market would not be able to get advice unless commission remains available.”


Holding forth

The majority of fund managers still consider European equities to be a “buy”. In the past month, the Axa Framlington and Newton European fund managers have increased their recommendations from a “hold” to a “buy” while other fund managers such as Credit Suisse, Fidelity, Gartmore, Jupiter and Threadneedle are still optimistic.

This week in Pensions

Apparently the Egyptian queen Cleopatra was so monumentally peeved about her boyfriend, Antony, dying and the prospect of being ruled by the invading Augustus Caesar she committed suicide by allowing some poisonous asps to bite her.

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]


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