FSA: Advisers must provide ongoing service for legacy trail

Scott Sinclair
clock

The FSA today proposes allowing the re-registration of trail commission when a client changes adviser after 2012, subject to the contract between the provider and previous adviser.

In its latest quarterly consultation paper, it says advisers must provide the customer with an ongoing service in return for the trail. The FSA has also clarified to IFAonline that advisers can then add a supplementary adviser charge if they feel the legacy trail does not sufficiently cover the ongoing service they will be providing to their new client. Firms will have to tell the client they have applied for the transfer of trail, and how much they are due to receive. In its March policy statement on adviser charging, the regulator suggested the transfer of trail should not be per...

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

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Compliance-focused adviser generation 'lost the human touch'

Compliance-focused adviser generation 'lost the human touch'

‘Now there's soft skills training but advisers naturally did it back then’

Isabel Baxter
clock 24 April 2024 • 2 min read
Advice firms face data challenges amid new regulation

Advice firms face data challenges amid new regulation

Firms face challenges in collecting data and due diligence processes

Sahar Nazir
clock 24 April 2024 • 1 min read
PA Working Lunches: Register today to hear from Baillie Gifford

PA Working Lunches: Register today to hear from Baillie Gifford

Join us for an informative session worth one hour of CPD

Professional Adviser
clock 24 April 2024 • 1 min read