FSA issues fresh commission churn warning

It views providers as potentially driving the risk of consumer detriment by offering large commissions to adviser firms in the run-up to the RDR to increase market share. Such behaviour could result in "unnecessary churn in the retail investment market and excessive costs for consumers", the FSA says in its first Retail Conduct Risk Outlook. Exiting firms, whose owners are hunting for a buyer in a market which may become flooded with sellers, are also flagged up as an emerging risk to consumers. Owners could seek to increase income through selling significant amounts of commission-...