As providers move to turn off the trail commission taps, writes Tim Sargisson, advisers must recognise the urgent need to ensure they remain in control of their revenue streams
It was interesting to read the Financial Conduct Authority (FCA) has "no immediate plans" to change its policy on trail commission but is still considering the issue. As part of its Asset Management Study, the regulator consulted on whether it should remove trail commission on share classes sold before RDR but - at least for now - it seems to have stepped back from turning off the taps. Be in no doubt, however, trail commission will go - either through provider or regulatory intervention, or general diminution - and today this legacy income provides no foundation for any advice business....
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
