Do you have a sales bias?

SALES BIAS?

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Charging fees contingent on a product sale is the next big concern for the FSA. Alasdair Pal asks advisers if the regulator is right.

Commission bias is set to be the biggest casualty of the retail distribution review. But now the regulator is worried consumers could suffer detriment from a new kind of arrangement: sales bias. It said this is "likely to persist in cases where the adviser charges fees contingent on a product sale or where charges are paid for ongoing advice regardless of whether or not products are sold". But is the FSA right to be concerned by this? Advisers say the regulator is half right. "It is going to happen to a certain degree," said Nick Lincoln, a financial planner at Values 2 Vision. "It...

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