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Practitioner panel defends commission at FSA APM

The regulator’s Practitioner Panel has told the FSA’s annual public meeting that it has seen no proper or reliable evidence of commission bias and called for consumers to be allowed the choice of fees or commission.

Chairman Roy Leighton told the meeting in London that it was universally taken for granted that commission based remuneration leads to bias.

While accepting the need for a review he called for it to be worked through in a logical progression with which the industry can cope.

He also argued that while customer agreed remuneration has merits much more thought would needs to be given as to how it operates in practice.

He also criticised Consumer Panel chairman John Howard’s views about commission.

He said: “I hear what John Howard says about commission but I would argue that one cannot be that unequivocal that all commission is wrong. It seems universally taken for granted that all commission based remuneration leads to commission bias. However the panel has not seen any proper or reliable evidence of this. We believe that issue is not about commission per se but about raising standards within the retail industry.”

“Life’s experience is that people don’t like fees – mortgages are onerous and the consumer’s attitude to fees is pretty negative other than for the wealthy. Let’s give the consumer choice.”


Teenager shows way for future

It is with some sadness I came across a letter in last week’s Money Marketing from Tom Gardner criticising Brocha Simon’s commendable desire to complete the IFS’s Cefa and Cemap at the age of 16. I was shocked to read such backwoodsman-like comments, especially following the publication of the FSA’s RDR new minimum qualification proposals. […]

Measure for measure

Promoting the value of bespoke advice should be a collaborative effort between brokers and insurers, says PruHealth sales director Dave Priestley.

Insurers agree to change online PPI sales

The FSA says product providers have agreed to change the way they sell payment protection insurance over the internet after it took action against them.The regulator says firms were offering loans where PPI was included automatically, using techniques such as a pre-ticked box. It says this could lead to customers buying PPI without making an […]

L&G gives HNW advisers direct access to senior underwriters

Legal & General is offering advisers direct access to senior underwriters for their high net worth clients. In discussing their applications pre-submission, L&G says it should reduce potential delays in sourcing both medical and financial information and get clients on risk sooner. L&G says these underwriters have specialist experience of the market that enables them […]


Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.


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