Trail commission is still important to the income of almost all advisers, according to research by software provider Intelliflo, despite the looming deadline that will see the payment method switched off for many of their clients.
One in five advisers said trail commission accounted for a third or more of their income. Trail commission - the annual fee paid to advisers by clients through their products - was banned by the regulator on products sold after 2012. It was replaced with a more explicit ongoing advice charge for clients who receive an ongoing service. From April next year trail income will also be banned on products sold before 2013 when they are held on platforms but will be allowed to continue on off-platform legacy products. Intelliflo's survey found for about a third of advisers trail repres...
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