Consumer interest calls for ban on commission, says Swedish regulator
The Swedish Financial Supervisory Authority has hardened its line calling for a ban on commission paid to financial intermediaries.
The Authority previously proposed a ban on commission paid when entering insurance contracts, but has now taken a firmer line saying that it “thinks a more comprehensive commission ban is required to resolve the conflicts of interest between advisers and consumers that commission creates.”
It added that: “A commission ban should apply to all advice on financial products, irrespective of the type of firm providing the advice.”
This stance is similar to the approach adopted previously by regulators in markets such as the UK and Netherlands in respect of products sold to retail investors, which have led to the creation of new share classes.
The Authority’s stance is contained in a consumer protection report, which it presented at its Consumer Protection Day.
A need for better advice on financial products, greater demands on instant loan firms and openness regarding the mortgage rate. These are some of the conclusions in Finansinspektionen’s new consumer protection report presented today at FI’s Consumer Protection Day.
The report also highlighted regulatory concerns over lenders leading borrowers into debt traps – instant loan firms will fall under the regulator’s authority on 1 July this year – and concerns over transparency and access to information in the Swedish mortgage market.
A summary of the report is available in English here: [asset_library_tag 7782,Consumer Report]