ISIS Asset Management says the politicians have 'missed the point' in the Treasury Select Committee's severe criticism of trail commissions paid to intermediaries.
Asset managerIsis says criticising the trail commission model fails to recognise the concept works to link remuneration of intermediaries with returns to clients over time.
Jason Hollands, director head of communications, says paying commissions for “doing nothing” is indefensible from a business perspective.
However, on the question of whether trail should be in existence at all, it should be up to the consumer to decide whether this meets his or her needs, rather than regulators, the government, or law makers in Parliament.
Transparency is a better way forward than banning trail, ISIS believes.
If consumers are made aware of the existence of trail, and their opportunity to switch IFAs if unsatisfied with returns made or service received, then “this creates pressure for advisers to improve their services.”
Isis will oversee some £120bn of funds under managementonce it completes a merger with Foreign & Colonial.IFAonline
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