Commissions needed to close savings gap

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Commission-based remuneration must remain available if the industry is going to help close the savings gap, says IFA firm Positive Solutions.

The comments come after Ed Balls, economic secretary to the Treasury, suggested most financial advice is “about selling products” and said the current business model “does not work well”. Positive Solutions says many consumers are unwilling to pay upfront fees and commission must therefore remain available to attract new customers and build longer-term relationships with existing clients. But it also believes there should be a gradual shift away from the industry’s current reliance on upfront indemnity payments towards a more level commission environment. It says this would help co...

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