The FSA said it hopes a consultation paper on the treatment of commission on legacy assets has "put to bed" any confusion on the issue, but it warned product providers yet to adapt their systems face an arduous task preparing for the rule change.
Today the FSA confirmed its proposed ban on legacy commission in what was a widely-expected move. Legacy commission refers to new commission due to an adviser as a result of a change to a contract set up pre RDR, but which occured post RDR. The change may be in the form of a top-up to a life policy or the buying of new units in a unit trust. "We now have a clear statement of how the future will look," said FSA head of investment policy Peter Smith (pictured). "Partly why we have issued this paper is to put to bed some of the confusion." The FSA is now looking to issue a policy p...
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