Is he right? The economist who doubts RDR will end sales bias

“Even if the sources of commission bias are removed, fee-based financial advisers will still have a bias towards action,” the long-awaited Kay Review, written by leading economist Professor John Kay (pictured), reads. “It requires strength of character to advise a client to do nothing, and few clients will pay much for that advice.” Not only were these words delivered by a respected academic, they also landed on the desk of a key cabinet member: business secretary Vince Cable. However, Kay’s verdict has triggered something of a backlash from advisers, who say they are very happy to...