Calls by the Association of British Insurers to ban trail commission have been branded "crazy" and "sad" by advisers.
In a leaked document set to be given to the regulator as a response to its retail distribution review, the ABI presses for a ban on the current system of remuneration. It recommends 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. But advisers have reacted with anger at what they see as ABI interference – asking ‘what has it got to do with them...
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