The Financial Conduct Authority (FCA) is consulting on whether it should remove trail commission on share classes sold before the Retail Distribution Review (RDR).
The Retail Distribution Review (RDR) had banned trail commission on new products when it came into force at the end of 2012 but the commission is still being paid on advised share classes bought before 31 December 2012. Respondents reckoned many of those invested in trail-paying share classes were not receiving on-going advice, and pointed out firms which run fewer share classes could benefit from reduced costs. In a consultation published alongside its Asset Management Market Study on Wednesday, the FCA said it had received "several" suggestions that a "sunset clause" to end all trai...
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