The Treasury Select Committee says it will refer financing of the Association of IFAs to the Office of Fair Trading for potential conflict of interest, after the AIFA admitted up to 85 % of IFAs' compensation levy costs into the FSCS are cross-subsidised by product providers.
In a tough grilling of the AIFA by TSC members this morning, MPs pushed AIFA director general Paul Smee to the wire - along with Amanda Davidson of Charcol Holden Meehan and an AIFA director, as well as Roger Saunders, deputy chairman of the AIFA - on a variety of issues concerning long-term savings, including the cost and remuneration of advice, the liquidation of Berry Birch Noble, the assumed lack of ethics of the industry, as well as the complexity of product structure, precipice bonds and the potential for Sandler suite products. Early in proceedings, however, chairman John McFall M...
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