Trail commission is no more than upfront an fee paid over a period of time and the ABI should be applauded for recognising this, according to Andrew Fisher of JS&P Towry Law.
In a document set to be given to the FSA as part of its retail distribution review, the ABI presses for a change in the current system of remuneration. It recommends the FSA bring in legislation preventing product providers from paying trail commission to IFAs or multi-ties for investment advice. The call has prompted anger among several advisers, who argue trail commission builds value in a business and separates the dedicated advisers from the also-rans as it promises a back-up service for clients. But Fisher, chief executive of JS&P, says this simply isn’t accurate. “Finally, someone...
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
