Advisers and clients could get "caught out" by the new tax treatment of payment of trail commission, according to James Hay Partnership.
A Conservative Peer has criticised fellow politicians for failing to question the Retail Distribution Review (RDR) commission ban and warned of the unintended consequences.
A number of providers have established 'holding' funds for the trail commissions earned by former Honister Capital advisers, as they await clarity on who rightfully owns the money after it was sold by Honister administrators Grant Thornton to another...
Most advisers intend to retain their independent status post RDR, but this appears to clash with the plans of firm principals and network bosses, research suggests.
The FSA is set to address concerns it will create an "unlevel playing field" by permitting trail commission to continue on fund switches within life policies set up pre-RDR, but not on other products.
The FSA today confirmed its policy and guidance on when trail commission will be paid after the implementation of the retail distribution review.
The FSA has finalised its guidance on when firms can (and can not) receive commission post-Retail Distribution Review (RDR).