Ron Sandler, the head of the Treasury investigation into the retail
investments, has stoked IFA fears about his review by claiming distribution
has an inbuilt ambiguity.
In an interview in the Sun-day Times, Sandler said there is prima facie
evidence that unit trust charges are high and acknowledged the high level
of concern about with-profits.
His comments suggest that fund managers may join life offices and
actuaries could also be hit by the review.
The Sunday Times said Sandler's comments suggested that advisers may have
difficulty giving impartial advice because of commission.
The Treasury says Sand-ler will not be giving further interviews before
the publication of his report.
Pretty Technical partner Kim North says: “There is massive
misunderstanding among the public about commission. It does need to be
totally transparent but often coverage from the national press overrides
the fact that it can be better for the client for us to work on commission
rather than a fee basis.”
Aifa director general Paul Smee says: “At least Mr Sand-ler is open about
his agenda. It is up to us to convince him that the market operates
efficiently and in the interests of the consumer.”