FSA to sniff out deals that 'smell like commission'

The Financial Services Authority (FSA) has defended its decision to warn providers and advisory groups about securing "distribution agreements" which may appear to be commission by another name, saying it has evidence of deals which have aroused its suspicions.

The FSA's head of life insurance departments, Nick Poyntz-Wright, told IFAonline the regulator has seen live examples of firms threatening the integrity of the Retail Distribution Review through "backdoor commissions". Earlier this week, the FSA sent out 'Dear CEO' letters to 24 of the largest providers, networks and IFA businesses to set out its concerns - though it did not name the firms involved, and said they had not necessarily "done anything wrong". In its letter, the FSA set out examples of agreements which may fall foul of the adviser charging rules. It also requested more inf...