From the Ed: Talk of a commission cap was always futile

This is partly (stress: partly) because of a ban on commission as part of the retail distribution review, but also because the Office of Fair Trading (OFT) would never allow it. So why am I discussing it here? As you may have read on IFAonline.co.uk last week, the FSA has declared itself confident it has all but erased commission bias, but is now being kept awake at night by concerns about ‘sales bias’. The issue again sparked some to pine for the return of a Maximum Commission Agreement (MCA). Referring to an MCA as a possible solution to the industry’s woes, one adviser said: “On...