The Office of Fair Trading will not take any action over the FSA's derived market average commission rates for collective investment schemes (CIS), despite agreeing the calculations used were "incorrect".
This latest announcement responds to a complaint made by the Association of IFAs (Aifa) in April 2005, which said the market average commission rates included in the remuneration menu were having a significant anti-competitive effect on the market averages for independent advice. Aifa argued this was because the data used by the Financial Services Authority to calculate the market average for CIS and investment bonds included both non-advised business and advised business, and therefore presented a lower market average than was actually representative of the true market average. The FSA w...
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