UK distribution model reproved

fsa report slams uk's model as unsustainable in long term and adviser remuneration as biased

The UK's distribution model for financial products has come under renewed fire in the FSA's latest risk outlook, with the regulator claiming it is unsustainable in the long term. According to the report, the system fails to benefit providers, intermediaries or consumers adequately and concerns about the lack of persistency of pensions and long-term investment policies also cast doubt on future industry profitability. In the FSA's Financial Risk Outlook 2007, adviser remuneration also came in for criticism yet again, with claims that intermediaries are often paid in a way that encourages t...