The British Bankers' Association (BBA) has warned consumers buying financial products should evaluate the overall cost of the product as well as the quality of service, instead of focusing entirely on commission benchmarks.
Figures released by the Financial Services Authority are only ‘benchmark’ figures revealing the industry average for commission charged on packaged investment products, says the BBA, and do not paint the entire picture.
Responding to the final rules on depolarisation, Ian Mullen, chief executive of the BBA cautions by shopping around, consumers need to take into account the overall cost of the product at the same time assessing whether commission charged is above, below or equal to the industry average.
“Access to the service, and reputation and reliability of the provider are also important. Different advisers do things in different ways and that is reflected in the quality and level of service they offer. Cheaper doesn’t necessarily mean better," he says.IFAonline
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