The ABI has voiced its concern over the lack of clarity surrounding legacy rules and said the regulator's latest stance marks a "fundamental" change to the Retail Distribution Review (RDR).
In a legacy commission paper sent to trade bodies in April, the FSA said it will permit trail commission for business sold pre-2012 but restated it would be "undesirable in principle" for legacy commission to be paid post RDR. It defined legacy commission as an 'additional payment' made to advisers in relation to a contract signed before 31 December 2012 but as a result of an event taking place after that date. However, the ABI said the new policy does not just fail to provide clarification but rather marks a sea-change in thinking. "The FSA's letter represents a fundamental change...
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