Advisers ditching initial commission for fees

The firm says the proportion of intermediaries selecting the fund-based fee option on its capital and income bond product has doubled from 22% in 2005 to 44% last year. Meanwhile, the average level of initial commission selected by advisers on the product fell from 5.4% in 2005 to 4.5% in 2007. Skandia research, based on responses from more than 500 advisers, supports this trend away from initial commission. Only 43% expect income from initial commission by 2010, with 37% from trail and 18% from fees. The provider says this represents a huge difference from the current market as sugges...