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

Carmen Reichman
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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...

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