Investment Commissions Soon To Be Banned In The United Kingdom

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.

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

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2 Responses

  1. Barry says:

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


    "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


    "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


  2. 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!


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