FCA has 'no immediate plans' to deal with pre-RDR trail commission

Opened consultation on issue last June

Tom Ellis
clock • 1 min read

The Financial Conduct Authority (FCA) has said it has "no immediate plans" to change its policy on trail commission but is still considering the issue.

As part of its Asset Management Market Study, last June it consulted on whether it should remove trail commission on share classes sold before the Retail Distribution Review (RDR), but the FCA seems to have put a stopper in any plans to ban such commissions. The regulator said it had received "a range of feedback on both sides of the deabte" that will inform its wider consideration of the issue. The 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. ...

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