The Tenet Group is calling for the payment menu to be scrapped because it says it is failing to help consumers compare prices.The network considers that expressing cost as a reduction in yield rather than as commission would provide a more transparent and readily understandable remuneration method. Chief executive Simon Hudson says because the menu, which was introduced with depolarisation last June, is neither transparent nor clear, it flouts the principles of the regulator’s treating customers fairly regime. Hudson says the commission level expressed to the consumer is paid by the provider not the consumer, which results in confusion. He says using reduction in yield would bring the focus back to value, which is of more interest to consumers and would enable like-for-like comparisons. Hudson says: “If we want to win back consumer trust and reduce the growing cynicism about financial services while enabling commercial competition based on cost of delivery, we are going to have to try a lot harder to demonstrate both how we are paid and the value of what we do in a way that consumers can understand. “We as a group will continue to lobby for a yield-based system for the benefit of consumer and adviser.” The FSA says, as part of its wider consultation into Mifid in October, it will be consulting on the impact of depolarisation and its initial disclosure documents. But the regulator is proposing to maintain the menu and the IDD while it continues to undertake the post-implementation review of Mifid. Spokeswoman Sam Bennett says: “We did carry out a full consultation on the menu before it was introduced asking for feedback from the industry. The result was in line with the outcome of this consultation.”
FSA chairman Callum McCarthy has joined the debate started by Ned Cazalet about life offices eating each other by paying big up-front commission and setting up a churners’ merry-go-round.
A survey of the Adviser Fund Index (AFI) panel has shown overwhelming confidence in equities with large caps in particular tipped to outperform over the next 12 months. More than 70 per cent of respondents believed the FTSE 100 would exceed 6,000 by the end of 2006 and 86 per cent felt that equities would […]
Aifa’s call for the introduction of limited or focused advice on specific product areas has been welcomed by many in the industry as long as important caveats are established.
Staff who handle complaints for IFAs and providers will soon be able to take a new complaint handling exam developed by the Institute of Financial Services. The qualification is a joint initiative between the IFS school of finance and outsourcing consultancy Huntswood which specialises in complaint handling. The final syllabus is currently under wraps but […]
Good and growing companies are still to be found, Simon Edelsten, manager of the Artemis Global Select Fund, tells Ross Leckie – even in a world marked by low(er) growth and political uncertainty.
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