In the second of a series tracking what the consumer press is communicating about the Retail Distribution Review (RDR), we look at what the Sunday Times told readers.
This series follows our round-up of what RDR-related material has appeared so far in the consumer media. You can read that HERE.
Death of a salesman
In its main piece on the RDR the paper went to town on the industry, explaining how the "rotten system of commissions" was being scrapped, bringing to a screeching halt the "gravy train" for independent financial advisers (IFAs).
The piece proceeded to explain the changes, and why the Financial Services Authority (FSA) believed them to be necessary, including examples of how IFAs benefit from the current system.
What is the consumer media writing about RDR
It also predicted that many advisers had not faced the real crunch yet and were instead focusing on getting their qualifications.
There was a mention of the firms that have already moved away from commission to adviser charging, adding the "firms most eager for change are typically those that serve wealthier customers".
However, the piece also set out the problems facing many advisers, of customers unwilling to pay for advice if they have smaller savings pots.
Despite the more positive parts of the feature, perhaps the most damning part came when it returned to the issue of commission.
"Sales commissions have been the dirty secret of Britain's savings industry for decades.
"Pensions companies and life assurers - household names such as Prudential, Norwich Union, Scottish Widows and Standard Life - spent years shovelling cash into the arms of financial advisers as incentives to sell their products."
This article continues...
Q2 net sales dropped almost 50%
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected