The FSA will take into account calls from the ABI to ban trail commission for IFAs as part of its Retail Distribution Review, but will also consider the views of other industry bodies.
In a leaked document seen by Professional Adviser, IFAonline’s sister title, the Association of British Insurers (ABI) pressed for a ban on the current system of remuneration. It says the FSA should bring in legislation preventing product providers from paying trail commission to IFAs or multi-ties for investment advice. The FSA responded by stating the process they were undertaking was an open review and therefore input from bodies such as the ABI would be taken on board. The ABI criticised the remuneration system in the UK in a draft of a submission it was set to make to the FSA. It a...
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