It seems financial services is not the only sector being challenged by conflicted remuneration incentives between ‘industry’ and ‘profession’.
Last year, GlaxoSmithKline decided to change its procedures for paying doctors who could influence the distribution of its drugs. Some say it’s because the company is trying to be honourable, although cynics suggest the company has been caught out and has decided to make the changes before it gets forced to.
Whatever the reason, there is a trend in the world for professional advisers to be seen to be professionals, which means they can’t be remunerated by industry influence for product distribution.
What would the world of financial services look like, if financial planners and advisers could only dispense advice and could not sell ‘drugs’?