McCarthy speaks out on inadequate distribution system

FSA chairman Callum McCarthy has questioned whether even intermediaries benefit from the current fin...

FSA chairman Callum McCarthy has questioned whether even intermediaries benefit from the current financial services distribution system, despite claims of commission bias. Speaking at a Savings & Pensions Industry Leaders' Summit, he noted that, at May 2006, the top 21 adviser firms had a turnover of £640m but operating losses of £22m, twice that of a year earlier. "The present distribution system is distinguished by a focus on business volume rather than quality, with symptoms including the attention still given to annual premium equivalent (Ape) as a measure of business success," he sai...