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Misys points to dangers of defined payment

Misys supports the abolition of polarisation but is warning the FSA that the defined-payment system is unworkable and impossible to police.

It claims that CP121 will restrict access to financial products rather than accomplishing its stated objective of opening the market up to consumers.

Retention of polarisation is not an option considered by CP121 and Misys says as polarisation is an all or nothing principle, of the options available, it supports abolition.

In its response to the FSA&#39s consultation on polarisation, Misys argues that the defined-payment system restricts consumer choice and warns that unscrupulous advisers will find ways around it.

The network giant is also calling for the abolition of the better than best rule that restricts product providers from owning big stakes in IFAs.

It warns that a depolarised world will require a rigorously monitored disclosure regime to protect consumers.

Co-ordinating all Misys Group responses DBS chief executive Nick Ansell says: “We disagree strongly with the suggestion that remuneration by commission is incompatible with independence. Just as consumers routinely negotiate on commission levels and product enhancement with their advisers, IFAs enhance competition by negotiating improved, more attractive, product terms with providers in order to improve their competitive offering.”

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