View more on these topics

LIA is keeping to its line on commission

The letter from Colin Langton headlined, LIA plan for move to fees would seal fate of IFA sector, attributes incorrect views to the LIA.

I am afraid there has been a bit of confusion about reports of our submission to the FSA. The LIA&#39s submission to the FSA can be seen in full on our website.

In a nutshell, what we said to the FSA was that the currently proposed menu of charging options is far too complicated and we would like to see it handed out at a later stage in the sales process, when some options have been discarded and the disclosure could therefore be simpler.

As an additional comment, we have speculated about changing terminology. If in future, commission could come to be known as “a fee costed into the product”, with the consumer being given the clear choice to either pay the fee or to have it costed into the product, then maybe some of the emotional connotations of the word commission could be reduced.

I have discussed this with the FSA and the Financial Services Consumer Panel and my impression is that the menu will go ahead but it appears to be accepted that changes of terminology may be a contribution to the debate which are worth following up.

The LIA has certainly not departed from its traditional line on commission. I do believe, however, that we are at something of a turning point, when we must get away from words which evoke consumer body reactions to our detriment.

John Ellis

Public affairs director,


Chorleywood, Hertfordshire


Out of context

•”The only problem with the FSA keeping its ear to the ground is that it will restrict its line of vision.” -Jim Gilchrist, former sales director, Scottish Life. •”If you want to know why they are all so upset, they all have pensions with Equitable Life.” – Analyst Ned Cazalet on Treasury select committee scepticism […]

&#39Tory Govt would shake up FSA&#39s intrusive regime&#39

The future of the FSA in its current form could be in the balance if the Conservative Party wins the next general election. In an interview in the Sunday Telegraph, Shadow Chancellor Oliver Letwin attacks the “intrusive regulatory regime” and says if the Tories are elected there would be a change of regime at the […]

Positive incentives could hit £28m

National IFA Positive Solutions is setting up a incentive scheme financed by parent company Aegon which could see advisers share in a pool of £28m. The company has attacked the schemes of rival IFAs, describing them as “weasel-worded incentive schemes, most of which have failed dismally”. The Prophitshare scheme is available to existing Positive Solution […]

Hargreaves Lansdown warns of VCT bandwagon

Fund firms could be shooting themselves in the foot by launching venture capital trusts on the back of generous new tax breaks aimed at boosting investment in the flagging sector, according to Hargreaves Lansdown. Invesco Perpetual and Keydata are among a burgeoning number of groups launching VCTs which invest in Aim-listed companies as they seek […]

Looking back at 2015

By Fiona Tait, Pensions Specialist 2015 was quite a year for pensions. Change, more change, and proposed changes to the changes. The Spring Budget – pre-election plans With everything that has happened since, it is hard to remember what happened in March. Following on from the bombshell of the 2014 Budget, the Chancellor confined himself […]


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