It is reported that the Financial Services Authority (FSA) has been asked to investigate the reward schemes of financial advisers; apparently there are concerns that the commissions and bonuses could affect the advice given, and encourage the mis-selling of financial products.
Now it seems to me that the hapless holders of the splendidly underperforming, and useless, endowment products sold some 10 or more years ago could have told them that.
The Consumers Association has asked the FSA to investigate how products are sold, and the level of commissions paid.
It has also requested that senior directors of financial firms be held accountable for the actions of their employees, and lose their own annual bonus if the firm is fined by the FSA for malpractice.
Now that is a good idea!
In other news, it is reported that a few hundred advisers at Bradford & Bingley are about to quit; as a protest against their new commission policy, which requires them to sell a set number of policies every year.
If they don't hit the target, they don't get a commission.
Bradford & Bingley (B&B) claim that B&B would never encourage staff to give misleading information.
It is certainly long overdue, that the FSA investigates the commission structure of the life assurance companies.