FSA attacks retail distribution model

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The Financial Services Authority has attacked the retail financial distribution model for being unreliable, untrustworthy and failing to establish long-term relationships.

Speaking at the PIMA conference last week, Bruce Robson, manager of the asset management sector at the FSA, said producers of retail financial services should wish their brands to be associated with qualities of reliability, trustworthiness and good performance, and to establish and develop long-term customer relationships. He added: “If this is an accurate summary of the aim, the distribution system seems to be failing to achieve it. Where there are cases of either mis-selling or mis-buying, the frictional costs associated with such transactions will inevitably take value out from the s...

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