Why doubts over trail income are troubling IFA buyers

Trail commission, the regular flow of income from the sale of products in the past, used to form an attractive part of the package for prospective buyers of an adviser client base. But as times, and more importantly regulation, have changed, some advisers looking to expand their businesses are saying they will not buy a firm that has clients on trail commission, let alone price it on a ‘fixed multiple mechanism' based on trail. It would seem some believe the writing is on the wall for trail commission. Regulatory inroads As it currently stands, future trail commission on the sale...