Cofunds is urging the FSA to clarify its stance on legacy commission following confirmation the regulator is pushing ahead with a proposed ban on the payments.
Earlier this month, the watchdog said in consultation paper 11/26 it will proceed with a 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 occurred post RDR. Under the proposals, life policy funds will be brought under the scope of the ban with a top-up to a life policy constituting a change to a pre-RDR contract. Although the consultation paper set out 13 scenarios under which the legacy commission ban will kick in, Cofunds is pushing the FSA to c...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
