Commission Hungry Insurance Sales Attack

Commission Hungry Insurance Sales Attack.

There has been calls for a huge clampdown on commission hungry sales people by the financial watchdog for the UK.  This has come after a several mis-selling scandals such as PPI and the Libor.

The Financial Services Authority (FSA) is very unlikely to put a blanket ban out on commissions but is very likely to impose that payments depend on how much the customer has benefited and not on the volume of sales they make.  

Our view
Independent advisers are already adapting to the new life to follow on 1st January where fees replace commissions for advice.  Sadly, a loophole was left where protection such as life insurance and income protection in addition to and non-advised investments and pensions could still take commission without any fee agreement with a consumer.  Banks have positioned themselves to leave the advice market, we assume to target the lucrative non-advised market.  We hope, this move by the regulator will put paid to the commission hungry sharks.
Read our article on Commission Sharks