'Protection should move to trail commission'

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Protection intermediaries should adopt a trail commission model to improve their businesses and give a better service to consumers, says Paul Bradshaw, chairman of Nucleus Group.

In a speech delivered at the Protection Review annual dinner, Bradshaw told attendees protection IFAs should follow the example of intermediaries in the wealth management industry who are moving to trail-based commission models where they get a 3% upfront payment followed by 0.5% in trail commission. At present, protection IFAs normally get paid twice the amount of the first year premium and there is no visible renewal commission. So Bradshaw suggests: “If IFAs took a reduction in the upfront payment and more trail commission, consumers would get a better service and IFAs would have be...

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