FSA to clarify trail fate when clients switch adviser

According to the Association of IFAs (AIFA), the FSA has identified the "unfortunate" ambiguity of the RDR directive on trail and will address practitioners' concerns. In last month's final rules, the regulator caused alarm after declaring it "expects" legacy trail commission to be paid to the client when they change adviser after 2012. Critics said the directive threatens to "devalue" adviser businesses, disrupt firms' expansion plans and "finish" IFA consolidation vehicles, as companies' worth is often gauged from its trail income. Last week, IFA support provider Tenet said it ha...