Ian Sayers, AIC
Ian Sayers, director-general at the Association of Investment Companies, believes the ban on platform rebates will lead to more empowered consumers.
He described the changes by the Financial Conduct Authority as putting "investors in the driving seat".
The FCA announced earlier this month that cash rebates would no longer be used on platforms from April 2014.
Mr Sayers said consumers were far more likely to complain about something they disliked if they were aware how much they paid for it.
He said: "Time and again, research has shown that, when costs are bundled consumers tend to do poorly. This is not just because they are unable to shop around for the best price on each element.
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"It also makes consumers less likely to demand higher standards. If you perceive something as being 'free' you are much less likely to complain about what you are being offered than if you can see how much you are paying for it."
Mr Sayers said the investment company sector was a great example of how transparency alone failed to remove commission bias.
He said: "With commission also a thing of past, customers will now see exactly what they are paying for advice, the platform and the fund. Products like investment companies, which are restricted in paying commission and platform charges, will be able to compete much more on their own merits."
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