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On the eve of what is sure to be Alistair Darling's most important political statement there is speculation and counter speculation about how he will address the situation of the UK economy next...
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Wednesday 27th June 2007
Improved transparency is needed in the financial advice market, a consumer group has said today.
The consumer group Which? claims that consumers are often sold products which may not necessarily be suitable for them.
Spokesman Dominic Lindley said that because advisors are paid commission from companies that sell financial products consumers often receive a sales pitch rather than proper advice.
"We think the current model of financial advice is failing many consumers," he told BBC Radio Five Live.
"There is an inbuilt conflict of interest in that most advisors are paid for by commission offered by the product providers, which can result in people being sold financial products that aren't right for them.
"Also, many consumers are confused about the different types of advice available and ultimately how they're paying for it, and many advisors are not complying with the FSA rules that require them to be clear with consumers."
His comments came before the Financial Services Authority published its review of the way in which financial products are sold.
It will examine how financial advisors are paid when selling products such as investment bonds and pensions, following complaints that they are too close to the companies and products they recommend.
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