The ABI has called for radical restructuring of commission structures which would see a major shift away from initial commissions towards ‘trail' commissions paid only if a buyer maintains premiums over time.
Details of a new report published yesterday by Charles River Associates (CRA) and entitled Financial Advice: How should we pay for it is apparently designed, according to the a ABI, to reassure consumers wanting to pay through commission-based structures. While the research points out it found no evidence of bias of commission-based selling and evidence of provider bias on regular premium products, in its ‘mystery shop' of 250 adviser firms, the ABI says simplification of commission structures, such as providing the same market average across menus, will also improve the effectiveness ...
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