Upfront commission is 'a thing of the past'

Richard Royds, head of UK retail at MLIM, says the fund management house believes it has proof of a clear move by IFAs to fee-led advice as the firm now pays less than £1m in distribution commission per £100m of funds invested, compared with 10 years ago when the firm paid out £3m per £100m. “The initial charge feels as though it is something from the past, rather part of the present,” says Royds. “For every £100 sold, we pay out less than £1m in commission, and we are paying as little commission as we have ever paid because the IFA market is moving towards fees.” According to Royds, alt...