Commission ban 'errant nonsense'
JPM Asset Management head of UK funds Jasper Berens said regulation was moving at such a pace worldwide that a blanket ban seemed inevitable.
“Regulators around the world are talking to each other and as they talk to each other more, this kind of stuff is becoming more important,” he said.
New Zealand adviser Simon Hassan said he agreed commission on investment would soon be a thing of the past. “Certainly for non-aligned advisers,” he said. “It seems a key way to eliminate a significant source of conflicts of interest.”
Fred Dodds, chief executive of the Institute of Financial advisers, said there was very little commission left on new investment products in New Zealand. KiwiSaver would offer small upfront commission and trail of about 0.25% he said and the entry fees in retail products was well displayed.
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