Trail commission is no more than upfront an fee paid over a period of time and the ABI should be applauded for recognising this, according to Andrew Fisher of JS&P Towry Law.
In a document set to be given to the FSA as part of its retail distribution review, the ABI presses for a change in the current system of remuneration. It recommends the FSA bring in legislation preventing product providers from paying trail commission to IFAs or multi-ties for investment advice. The call has prompted anger among several advisers, who argue trail commission builds value in a business and separates the dedicated advisers from the also-rans as it promises a back-up service for clients. But Fisher, chief executive of JS&P, says this simply isn’t accurate. “Finally, som...
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