Unbundling product costs could expose pricing flaws

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stakeholder charges breakdown shows resources are taken from other products

The FSA's plans for unbundling product costs and commission could expose remuneration levels that look more than 40 times higher than the actual product costs, such as the case with stakeholder pensions. With the FSA still examining the issue of unbundling, stakeholder has operated in this regime for almost a year. The regulator is expected to release a consultation paper on commission disclosure later this year and there are concerns that strict procedures could force disclosure of commission payments alongside the product charges, making it easier to compare. At the moment, the un...

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