Our ever "vigilant, pro active and respected" Financial Services Authority (FSA) has attempted to pull its head out of the sand and has proposed that financial advisers should no longer receive commission from selling investments, pensions and insurance products.
Doubtless this will come as welcome news to the millions of hapless endowment policy holders who were mis-sold these useless products in the 80's by commission hungry salesmen!
The FSA said:
"We propose to ban product providers from offering amounts of commission to secure sales from adviser firms and, in turn, to ban adviser firms from recommending products that automatically pay commission."
This being the FSA, even if the rule changes are implemented, they won't come into effect until 2012.
Given that millions of consumers (aside from the endowment holders) were also wrongly advised to opt out of occupational pension schemes, and were conned into buying precipice bonds and split-capital investment trusts, one wonders why it took the FSA so long to pull its head out of the sand and act.
Asleep at the wheel as ever!
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