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Nov 17 2012

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Investment Commissions Soon To Be Banned In The United Kingdom


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Many people are still paying commissions to purchase investment products.  

High commissions entice many investment advisors to jump into bed with the fund company offering the hottest (commission) action.

Is that cool?  Nope.  And some countries are banning the practice.  In the United Kingdom, they’re banning such coziness.   And an upstanding suitor is ready to step forward.

If you’re from Great Britain, you may want to read about Vanguard UK.

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About the author

andrew hallam

I'm a freelance finance writer, lucky enough to have been nominated as a finalist for two Canadian National Publishing Awards. I'm also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School, a book explaining how I became a millionaire on a teacher's salary, while still in my 30s. Working to empower people financially, I'm available to motivate and inspire people on basic retirement planning and index investing. I'm happy to comment on your questions, first, please read the Terms of Use.

Permanent link to this article: http://andrewhallam.com/2012/11/investment-commissions-soon-to-be-banned-in-the-united-kingdom/

2 comments

  1. avatar
    Barry

    Changes are underway in Australia also. as at 1st July 2012 the industry had 12 months to comply with changes

    http://www.fpa.asn.au/default.asp?action=article&…

    "In 2010, the Government announced that it would start a process to create new laws designed to encourage Australians to seek financial advice and boost consumer confidence and trust in obtaining financial advice. These laws are called the Future of Financial Advice (FoFA) reforms."

    Financial,Planning Groups fought it of course

    http://www.abc.net.au/news/2011-04-28/financial-p

    "The changes ban trailing commissions and commissions on superannuation insurance, and require that financial advisers always act in the best interests of their clients.

    The financial advice industry is littered with some ugly corpses: Storm Financial, Trio, Opes Prime, Fincorp and Bridgecorp just to name a few."

    The bookies are the only ones at the racetrack with expensive cars ;o)

    Australian Governement Information Page on the Future Of Financial Advice

    http://futureofadvice.treasury.gov.au/content/Con

    Barry

  2. avatar
    Andrew Hallam

    It's going to be interesting, Barry, to see what the industry does to find a way around these things. If they want to be shifty, I think they could still be…while covering their legal tails at the same time. What do you think? It will be interesting to see what happens in Australia and the UK next year.

    Thanks for the links! They're great!

    Andrew

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