The flip side of commission: Debate rages over risks of consumer detriment
21 Jan 2016
Radical plans to re-introduce commission have split the industry as the FCA grapples with the question of how to encourage advisers to serve the mass market.
Earlier this month, Money Marketing revealed the Financial Advice Market Review panel is considering a proposal to allow providers to pay commission to advisers, subject to strict safeguards to protect consumers.
FCA acting chief executive Tracey McDermott subsequently refused to rule out a return to commission in an interview on BBC Radio 4’s Money Box. The issue has predictably sparked fierce debate, with some arguing it would be a dangerous, retrograde step and others suggesting it could hold the key to bridging the advice gap.