Phil Young: FSA marketing ban would bankrupt most networks

The banning of marketing "packages" between providers and advisory groups would bankrupt most networks and support service providers, Threesixty managing director Phil Young said.

Last week, the Financial Services Authority (FSA) contacted the CEOs of 24 providers and IFA firms to warn them against "distribution agreements" which could be perceived as attempts to "work around" the Retail Distribution Review (RDR) commission ban. Examples of agreements the regulator said it found concerning included providers "organising, subsidising or paying for distributor training, conferences or seminars", as well as payments to a distributor to help promote a suppliers products. Young said a number of networks generated more than half of their revenues from such arrangemen...