Cofunds is urging the FSA to clarify its stance on legacy commission following confirmation the regulator is pushing ahead with a proposed ban on the payments.
Earlier this month, the watchdog said in consultation paper 11/26 it will proceed with a ban on legacy commission in what was 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 occurred post RDR. Under the proposals, life policy funds will be brought under the scope of the ban with a top-up to a life policy constituting a change to a pre-RDR contract. Although the consultation paper set out 13 scenarios under which the legacy commission ban will kick in, Cofunds is pushing the FSA to c...
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