Restricted architecture 'could spark next mis-selling scandal'

The increasingly rapid move towards restricted architecture and a focus on cost above all else across the financial services industry could spark the next mis-selling scandal, Fidelity's Ed Dymott has said.

Dymott (pictured), head of business development at Fidelity Worldwide Investment, noted the major shift in distribution sparked by the recent rebate ban, with groups creating much narrower ranges of products to offer to users as a result. While the direction of travel is understandable given the major disruption in the whole distribution chain caused by the rebate ban, he warned it could lead to investors being shoe-horned into products which - while cheap - do not provide them with the best possible outcomes. "The current development of restricted architecture risks creating a model ...