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23 November 2010 Last updated at 15:23
Financial regulator says mis-selling costs hit £500m
FSA chairman Lord Turner proposes a ban on commission-driven sales
Continue reading the main story Related stories
The mis-selling of finance products costs consumers about £500m a year, according to the chief executive of the UK's financial regulator, Hector Sants.
He estimated that £250m of unsuitable pensions or investments were sold annually, but the real figure is double when fees and commissions are added.
Mr Sants, chief of the Financial Services Authority (FSA), was appearing before the Treasury Committee.
MPs are investigating commission-drive sales in the investment sector.
The FSA has proposed banning financial advisers from receiving commission on products they sell. Advisers would, instead, charge separately for the advice given.
Some financial advisers have warned that they will have to shut up shop because of the planned changes.
Lord Turner, the FSA's chairman, who appeared alongside Mr Sants, said that the costs of the investment industry were too high.
"We want less wasted money," he said. "A depressing amount of people's savings is disappearing in intermediary and administration costs."
More here
http://www.bbc.co.uk/news/business-11821028
Financial regulator says mis-selling costs hit £500m
FSA chairman Lord Turner proposes a ban on commission-driven sales Continue reading the main story Related stories
The mis-selling of finance products costs consumers about £500m a year, according to the chief executive of the UK's financial regulator, Hector Sants.
He estimated that £250m of unsuitable pensions or investments were sold annually, but the real figure is double when fees and commissions are added.
Mr Sants, chief of the Financial Services Authority (FSA), was appearing before the Treasury Committee.
MPs are investigating commission-drive sales in the investment sector.
The FSA has proposed banning financial advisers from receiving commission on products they sell. Advisers would, instead, charge separately for the advice given.
Some financial advisers have warned that they will have to shut up shop because of the planned changes.
Lord Turner, the FSA's chairman, who appeared alongside Mr Sants, said that the costs of the investment industry were too high.
"We want less wasted money," he said. "A depressing amount of people's savings is disappearing in intermediary and administration costs."
More here
http://www.bbc.co.uk/news/business-11821028
