Several specific issues relating to the calculations of market average rates set to be included in menus to provide consumers with comparators were of sufficient concern to warrant mention in today's Policy Statement.
These include problems associated with differences in commission and commission equivalence, commissions being lower for execution-only business, changing values of commissions paid at various times, application of assumptions in the regulator’s calculations, and distinguishing between product groups in the data. The FSA - in Reforming Polarisation: Implementation - Feedback on CP04/3 (A menu for being open with consumers) and made text - also admits it is to continue, for the time being, to suspend collection of direct rebating data from intermediaries on the basis this is not current...
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