We will survive trail switch-off, declare 'stoic' advisers

Carmen Reichman
clock

The vast majority of advisers have faith they will adapt successfully to a world without trail commission, but one in ten say it could mean they cease trading, according to a survey.

Three quarters of advisers expect to be in business in two years' time, while 16% were unclear, according to a poll of 183 intermediaries by Panacea Adviser. Trail commission paid to advisers for on-platform business, both new and legacy, will be banned from April 2016 after the Financial Conduct Authority (FCA) acted to ban platforms from retaining rebates. The rebates model - common among the fund 'supermarket' giants - supported the payment of trail commission to advisers. Though wider trail commission on undisturbed business written pre-Retail Distribution Review - such as that...

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 Regulation

PA360: FCA's Hulme - Targeted support will 'never' replace holistic financial planning

PA360: FCA's Hulme - Targeted support will 'never' replace holistic financial planning

A ‘broader stepping stone’ to fully fledged advice

Isabel Baxter
clock 01 May 2025 • 2 min read
FCA on finfluencer financial harm: 'We need people to sit up and take action'

FCA on finfluencer financial harm: 'We need people to sit up and take action'

Treasury Committee questions regulator on the impact of finfluencers

Isabel Baxter
clock 01 May 2025 • 4 min read
FCA's data reporting cuts: 'A start but fairly low hanging fruit'

FCA's data reporting cuts: 'A start but fairly low hanging fruit'

Impact is yet to be determined but a positive step, commentators say

Isabel Baxter
clock 29 April 2025 • 4 min read