Commission menus may not fairly reflect the actual cost of advice, suggests analysis by Taxbriefs, as the data collated could be distorted by "rounding", the product category it is included in or by payment method.
Details of Taxbriefs’ monthly newsletter - Taxbriefs Financial Timesaver - suggests the information included in an adviser’s commission menu could be distorted in part by the FSA’s methods of collating data, as market average commission will be 'rounded'. The FSA has designed commission menus to try and encourage consumers to shop around when seeking financial advice and bring more competitive rates. However, Taxbriefs highlights analysis by PricewaterhouseCoopers suggests the FSA’s own data cannot confidently be trusted as an indicator of commissions as PwC says 'average rates are ro...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes