CRA was asked by the ABI to conduct research into the market impact of encouraging Customer Agreed Remuneration (CAR) as a method for determining intermediary remuneration for financial advice. The objective was to assess its impact on actual or perceived bias resulting from the current remuneration models, and whether it encourages additional saving and greater provision of advice.
Market expectations and security prices
Market participants use the information available to them at any given time to form expectations of the future performance of a company and a company’s stock...