It was in March 2012 that FSA told about it viewing the financial incentives paid to direct sales forces of banks and providers as an emerging risk and outlined plans to take action against firms involved.
Further, in June 2012, advisers had called on Financial Conduct Authority chief executive designate Martin Wheatley to stamp his authority on the industry by putting an end to banks’ aggressive sales incentive schemes.
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MoneyMarketing quoted Lord Turner as saying at FSA’s annual public meeting, "The FSA has therefore paid increasing attention to the structure of incentives. The Retail Distribution Review, on which work commenced in 2006, has been designed to remove commission bias in the financial adviser space and over the last year further work on the RDR has been published, providing guidance on legacy commission and our rules on independent advice, to support the industry as they prepare for implementation at the end of this year."
"In addition over the last year, the FSA is consulting on policy in relation to the payments to platform service providers by fund managers again aiming to address issues of potential bias and we are currently considering issues relating to sales practices in direct sales forces," he further added.
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