Regulatory distortion of the market, intervention required.

The Financial Regulator has been under increased scrutiny and for that reason it is probably a good idea if they take steps to ensure a fair and transparent marketplace, because the current public sentiment is that they have not performed their job as well as they should have. From the point of view of the intermediary channel, there are marketplace distortions that are actually harming customers and we have explained this via broker representative bodies but to no avail.

The issue currently causing problems is that of dual pricing/dual offerings. This occurs where a bank has one price if you go direct, and another if you go through a broker, or where they offer incentives via one channel that cannot be matched in another. The danger is that independence of advice is under threat when there are ‘teasers’ involved through any channel that diminishes the potential for multi-institution advice.

If banks were willing to compete across all distribution channels equally it would be one thing, but they are not, in fact, …

Read More