Concerns are mounting over the number of orphaned clients post-RDR after the FSA said a customer's new adviser could inherit their existing trail commission.
Advisers say they may be forced to end the relationship if the client is unwilling to pay a supplementary adviser charge on top of the inherited legacy trail. An additional charge may be necessary if, after discussing the client’s circumstances, the renewal income fails to cover the ongoing work required. In its latest quarterly consultation paper (QCP), the FSA said after 2012 advisers will be permitted to re-register a new client’s legacy trail commission, but must provide an ongoing service in return. Sam Caunt, partner at Kingston PTM, said: “Some clients will say they are unpr...
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