FSA: Advisers must provide ongoing service for legacy trail

Scott Sinclair
clock

The FSA today proposes allowing the re-registration of trail commission when a client changes adviser after 2012, subject to the contract between the provider and previous adviser.

In its latest quarterly consultation paper, it says advisers must provide the customer with an ongoing service in return for the trail. The FSA has also clarified to IFAonline that advisers can then add a supplementary adviser charge if they feel the legacy trail does not sufficiently cover the ongoing service they will be providing to their new client. Firms will have to tell the client they have applied for the transfer of trail, and how much they are due to receive. In its March policy statement on adviser charging, the regulator suggested the transfer of trail should not be per...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Brooks Macdonald gives sports wellbeing advice

Feel Good Friday: Brooks Macdonald gives sports wellbeing advice

Wealth manager has partnered with charity Sporting Wellness

Professional Adviser
clock 03 May 2024 • 1 min read
Adviser guide aims to 'demystify' Consumer Duty annual reporting

Adviser guide aims to 'demystify' Consumer Duty annual reporting

Firms to produce first annual Consumer Duty board report

Sahar Nazir
clock 02 May 2024 • 1 min read
Behavioural coaching a 'tough sell' among prospective clients

Behavioural coaching a 'tough sell' among prospective clients

‘Clients overlook major sources of value from advisers’

Isabel Baxter
clock 02 May 2024 • 1 min read