Initial commission to fall, says Skandia

The research showed that on average, 59pc of advisers' remuneration currently comes from initial commission, with 26pc from trail commission and 12pc from fees. However, in three years time, advisers expect that only 43pc of their remuneration will come from initial commission, while trail commission will account for 37pc. Fee income is expected to rise to 18pc of the total. According to Skandia, this is illustrative of advisers increasingly looking to move away from standalone product sales towards an ongoing review and financial planning service, with the cost to the client spread over...