Factory-gate pricing 'brings advice transparency'

The FSA has raised concerns about the retail distribution model on several occasions, most notably in November last year when Bruce Robson, manager of the asset management sector, described it as being unreliable, untrustworthy and failing to establish long-term relationships. Alex Roy, assistant director of distribution reform for the ABI, believes the fact providers are paying advisers to sell products has created a “significant perception problem” on the part of consumers and a factory-gate pricing model could help to address this problem. Factory-gate pricing is already used by some...