Buckles: Blocking trail when switching adviser will devalue firms

In its March Policy Statement, 'Distribution of retail investments: Delivering the RDR', the FSA said a decision on whether trail commission continues to be paid to the previous adviser or can be switched to the new adviser should be determined by the previous adviser and the product provider. But it says where trail can be switched, it would "expect" it to be paid to the client, "given that the new adviser did not provide the service for which the commission was payable". Speirs says the loss of ongoing income - which some consolidators say represents the true worth of an advice bus...