Platform FundsNetwork is developing functionality to allow advisers to declare whether or not their post-RDR activities constitute "advice" in a bid to clear up ambiguities surrounding legacy commission.
The adviser fee functionality, to be rolled out in Q3, will enable the platform to facilitate initial and ongoing fee payments under adviser charging rules when ‘advice' has been given on existing contracts. In its November consultation paper, the FSA set out plans to ban 'legacy' commission - stating if new "advice" is given on a pre-RDR contract resulting in a change to that contract then commission cannot be paid. But ambiguities surrounding the definition of ‘advice' and the difference between legacy and trail commission have caused widespread industry concern. Amid the lack of...
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
