Five sunset clause pitfalls for advice firms to avoid

Since last April platforms have been required, for all new business, to clearly disclose to end investors the specific costs of their services, any associated product wrappers, advice and ongoing fund management. The transitional period allowing platforms to continue to retain legacy payments for existing business -the two year ‘sunset clause' - expires on 5 April 2016. For advisers, best practice suggests three options: 1. Do nothing. Trail commission income on any remaining ‘legacy' funds payable via platforms will cease in April 2016. 2. Do not change the platform, but agree ...