Menu market average rates are good enough - FSA

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The Financial Services Authority says market average commissions used in the depolarisation menu will not be altered, despite industry feedback suggesting they are not representative of products' average rates.

The Association of IFAs had previously questioned the way in which the FSA had calculated market average commissions on lump sum collective investments ( Aifa raises concerns over menu market averages, Tuesday 1st March 2005) because the majority of data included cases which paid out trail commission only, and was therefore substantially lower than the standard model, said the Aifa. Similarly, the Aifa has expressed concern about the inclusion of market average rates for short-term endowment investments such as guaranteed growth bonds (GGBs), as they are listed in the same category as ‘s...

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