Julian Pruggmayer (Letters, 24 July) makes a valid point, and if it is any consolation to him, I must be the second most unlucky person in the financial services industry.
From 1 January 2013, I can now count around a dozen clients who have either not proceeded with investments after discussing their fee options or have reduced the amount they originally proposed to invest.
Some were new prospects, while a few others have been clients of mine for many years. The general consensus seems to be that they do not feel inclined to pay for something they once perceived as being free.
I am sure that responses from IFAs in London and the Home Counties, who only deal with company directors and rich bankers, will claim they are unaffected. Those who advise builders, nurses, factory workers and general office staff, however, might tell a different tale.
There was not much wrong with the commission system. All those faceless suits at the FCA had to do was to ensure that all providers stuck within a level remuneration playing field — the commission for, say, a £20,000 investment bond would be the same no matter which provider it was placed with. That way, all commission bias would be eradicated.
This industry will never move on while we are stuck with a regulator that commands not a shred of credibility from those who operate on the ground floor.
Steve Hobin
Principle
Ashley Law
Droitwich, Worcestershire
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