Regulator set to scrutinise rates for retail commission

The FSA will monitor the retail market to ensure advisers are not colluding to push up market averag...

The FSA will monitor the retail market to ensure advisers are not colluding to push up market average commission rates once they are forced to disclose them to clients under depolarisation. The regulator has acknowledged the new menu system, which will include a firm's maximum commission rate, will force firms to drop charging levels. While admitting that this will force some advisers out of the market, the FSA argues that the failure of inefficient firms will have little impact on competition and choice to the consumer. Several firms have complained that tacit collusion between firms on...