The advisory industry is backing calls for firms to be permitted to receive commission from ‘legacy' products until 2018 - five years longer than the FSA intends.
Advisers said the ‘sunset clause’ would allow for an “orderly transition” to adviser charging and may protect consumers from being moved into inferior products. Skandia, which suggested the delay, argued allowing advisers to continue to receive legacy commission could help prevent poor customer treatment. Currently, the FSA believes it will be “undesirable in principle” for legacy commission to be paid to advisers after the RDR rules come into force on 1 January 2013. It said this could lead to advisers being paid twice for the same work, once through adviser charging and once through...
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