Catastrophic: Derek Bradley argues against banning trail commission

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 ...