Ron Sandler, the head of the Treasury-sponsored review of retail savings, launched his investigation...
Ron Sandler, the head of the Treasury-sponsored review of retail savings, launched his investigation yesterday saying that he would look at the commission structure for intermediaries, particularly IFAs to find out whether there was a conflict between commercial incentives and consumer interest, reports the Times.
There are widely held suspicions that sales of investment products are skewed by the level of commissions. It is also felt that the 'front loading' of commissions may deter many savers from switching providers, even when it is in their best interest.
On the subject of Equitable, Sandler expressed concern on the area of with-profits and deemed them as being opaque, over-complex and offering poor value to early leavers.
Consumers are continuing to borrow at record levels, shrugging off fears of recession to remain positive over personal finance, writes the Times. This dampens hopes that the Bank of England will bow to pleas for an interest rate cut on Thursday to boost up the economy.
During his visit to Brazil, Tony Blair warned EU leaders that putting off much-needed economic reform risk damaging Europe's long-term prosperity, reported the Times.
The prime minister described next March's EU economic summit in Barcelona as "make or break for economic reform". Energy and financial services liberalization, as well as reform of the Common Agriculture Policy, could no longer be put off, he said.
Peter Knapton, head of Legal & General's active fund management business, unexpectedly stepped down last night after seven years, writes the FT. His departure prompted industry observers to question the company's commitment to active management. Legal & General has failed to fill the post of head of UK equities, more than six months after it fell vacant.
Cazenove Group could see a battle for the successor to David Mayhew, the chairman , after appointing David Verey as joint deputy chairman yesterday, says the FT. Mr Verey, who resigned as chairman of Lazard two months ago, will share the deputy chairmanship with John Paynter.
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