FSA urged to bin commission

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The Financial Services Consumer Panel says a move by the FSA to end commission payments is the only way to avoid mis-selling scandals in the future.

In his foreword to the Panel's annual report for 2006-7, chairman John Howard says: "Establishing a new system of paying for advice could prove to be the most important development in financial services since the FSA was created." Earlier this week, David Hickey, executive chairman of Lighthouse Group, suggested the Retail Distribution Review had been hijacked by a debate on commission. However, Howard says the issue is a very important aspect of the RDR adding: "This issue has been ducked before and the FSA's response addresses one of the most important failings of the industry.” T...

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