The FSA has confirmed its proposed ban on legacy commission in a widely-expected move.
Legacy commission refers to new commission due to an adviser as a result of a change to a contract set up pre RDR, but which occured post RDR. A change may be in the form of a top-up to a life policy or the buying of new units in a unit trust. This may, in some circumstances, trigger a new commission payment. This would be deemed legacy commission and will be banned from 1 January 2013, in line with the regulator's general ban on commission payments to prevent product or provider bias. The only commission payment that may remain after 2012 is trail commission agreed on a contract s...
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