The removal of trail commission proposed by the regulator could hit the value of some advice businesses and see some go under, impacting FSCS levies, advisers have warned.
The Financial Conduct Authority (FCA) yesterday revealed it would consult on whether it should remove trail commission on share classes sold before the Retail Distribution Review (RDR). 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 trail commission should be implemented to combat the issue. Informed Choice managing director Martin Bamford hailed this as a good idea, arguing all investments with trail commissions should have been "switched off at once" with the R...
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