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Scottish Life attacks FSPP views on commission

Scottish Life has attacked the recent comments on commission made by the FSA’s Practitioner Panel suggesting it has misinterpreted the goals of the Retail Distribution Review.

Scottish Life head of group communications Alasdair Buchanan says he is becoming increasingly frustrated by suggestions that the Retail Distribution Review is anti-commission.

He says under the RDR Customer Agreed Remuneration removes a traditional commission structure that is inherently biased but retains a form of commission that is free from bias and can empower the adviser.

Lat week FSA Practitioner Panel chairman Roy Leighton said: “It cannot be that unequivocal that all commission is wrong. It seems to be universally taken or granted that commission based remuneration leads to commission bias.

While CAR does have its merits much more thought needs to be given as to how it will work in practice and the type of information needed at the point of purchase that consumers find useful.”

Buchanan says: “It is very frustrating that yet again someone is saying the whole thrust of the RDR is anti-commission. What the RDR is about is putting commission on a more sensible footing but still taking the costs of the payment from the product. It is commission which the adviser fully agreed with the client.”


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