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October 20, 2010


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Thomas Barker

True, but the biggest reason those restrictive rules exist is pension mis-selling in 80s.

There's a strange economics to misleading advice. The small firms I've worked for live in terror of even being accused of being misleading, but are reasonably relaxed about chatting to customers. Common-sense survives as the overhead of setting complex rules is too high.

A big corporate might have millions of procedures about what they can/can't say to customers, but ultimately they can make $Y out of a bad recommendation and budget 7% of that for the fines/compensation. To a large organisation, the cost of self-insuring deceptive behaviour (like PPI sales) is cheap.

I think consumers have always been on their own. Maybe the FSA should just spend it all on billboards saying "Sales people are evil and should not be trusted." :-)

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