The Financial Services Authority (FSA) should tighten up the way some providers market their services, according to one adviser who says he is continually bombarded by providers pushing commission.
Karl Pemberton director of north-east based Active Financial Services explained that an email he received from a company called Bridging Loans with the headline "brokers we love you, earn up to 3% commission" was one of very many he had recently received.
He said that these marketing emails are selling protection, bridging finance and secured loans and so are not banned under Retail Distribution Review (RDR) rules, which only block commission on investment products.
However, Pemberton said no IFA worth their salt would get involved with a company marketing its services in this way.
"I delete these emails as soon as they land in my inbox, I can't believe any provider is still peddling this crap," he said.
"I just wouldn't entertain speaking to a company if their main focus is commission and I think the same is true of any IFA who is looking to recommend products based on what is right for their clients.
"It is frustrating when lots of people are working tirelessly to eradicate commission from the industry and it seems unfair that companies are still marketing to advisers in this way because it would be the adviser that would be tarnished [if they did not recommend a product based on what was right for their client].
"The FSA really should tighten up the rules around the marketing of these products in line with the ethos of the RDR."
In a response Bridging Loans said: "We offer funding of buy-to-let / investment properties and property developments, rather than regulated investments and so the RDR rules do not apply to our products.
"Nonetheless, we would acknowledge that financial advisers should always research the market and find the best options for their client, in terms of interest rate, quality of service etc.
"Our recent Christmas and Valentines Bonus campaigns were designed to highlight our good rates and customer service - the additional 1% bonus does not come out of the loan proceeds, but is paid by us out of our marketing budget.
"This incentive offers our introducers the flexibility to reduce their client's fees".
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