Vertical integration is not all it's cracked up to be

Nevertheless, there is a fundamental conflict of interest if supposedly ‘independent advisers’ are encouraged to recommend a predominately in-house solution.

What happens when the investment returns of the in-house solution are very poor? Do you think an adviser would be able to recommend an external solution?

This is an extreme situation and in many instances this will not be the case, but to continue to permit this to occur will undoubtedly reduce both consumer choice and competition.

Alan Beaney is Chief Executive at RC Brown Investment Management