NU says IFA bond commission cut may set precedent

The 1% cut will ensure a “sustainable” balance between value for the customer and return for the adviser and provider, it says, adding it hopes its competitors will “think very carefully” about mimicking the move. Currently advisers have the option of upfront commission of 6.8% on the Portfolio Bond, which will now be 5.8%, or a fund-based option of 4.5% initial (now 3.5%) and 0.5% trail. “This is a difficult decision but the right one,” says NU marketing director David Barral. “Over the years commission levels have increased to a point where, in our view, they are no longer sustainable.”...