Derek Bradley, chief executive officer of Panacea Adviser, on the catastrophic effects on advisers should trail commission be switched off.
The Financial Conduct Authority (FCA) has been considering a ban on trail commission since June. More recently, the regulator has let it be known it is carrying out a series of reviews into firms’ compliance rules to understand whether the lack of an end-date for the payment of trail commission on pre-Retail Distribution Review (RDR) business might lead firms to act in ways that risked poor consumer outcomes. While consumer detriment must always be front of mind, the regulator seems to be missing the fact that stoppage of trail commission will be detrimental to many adviser firms and ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes