FSA to allow trail commission on fund switches within life policies

clock

The Financial Services Authority (FSA) will allow advisers to continue to take trail commission after 2012 on fund switches within life policies set up pre-RDR.

The FSA had already banned 'legacy' commission post-RDR. This sees commission due on assets set up pre-RDR turned off if new advice is provided on the assets. Commission due on pre-RDR assets where no new advice is given may continue. But it said there was still confusion among advisers and providers on cases where new advice leads to no changes being made to a product, and where the advice relates to fund switching within a life insurance product such as an investment bond. It said commission will still be payable on fund swtiches within life policies. However, all other fund swit...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Wrap/platforms

Will IFA-owned platforms take over the financial advice sector?

Will IFA-owned platforms take over the financial advice sector?

PA talks to industry experts on the future of adviser-owned platforms

Sahar Nazir
clock 27 March 2024 • 9 min read
CGT support from platforms now 'adviser must have'

CGT support from platforms now 'adviser must have'

Shrinking personal allowances dragging more investors into CGT net

Jenna Brown
clock 27 March 2024 • 2 min read
Aviva named the preferred platform provider by advisers

Aviva named the preferred platform provider by advisers

Quilter remains in second place followed by AJ Bell and Transact

Isabel Baxter
clock 04 March 2024 • 1 min read