Investment firms should only be paid for good returns, suggests TSC endowment report

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Investment and endowment product remuneration should in the future only be paid if products deliver "a satifactory return", Treasury Select Committee officials have argued.

A report published this morning by the Treasury Select Committee into the current endowment shortfall crisis argues potential mis-selling is likely to continue as the way in which investment firms are currently remunerated rewards firms for the sale of products, rather than the performance they deliver, is "inappropriate". Several different sectors of the investment industry have been criticised - including with-profits and the Equitable affair - making a report in the endowment crisis much wider ranging than initially anticipated. In particular, the industry and government ought to de...

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