How much more must the world of financial advisers come under attack?
Nearly 1,100 advisers have now voted on our poll “Will the removal of trail commission have a negative effect upon your business”?
90% say it will be catastrophic!!!
We have seen many comments like those below across a number of LinkedIn groups on the subject as well as our site:
“Does anyone know if the FCA has publicly given any view on Friend’s Life’s decision to stop paying trail and not passing back to the relevant customers either”?
“Trail commission is contractual on contracts already in force. It was disclosed to potential investors before they invested and one can only presume that they were content with it”.
“Can someone please enlighten me about the reason for switching off trail if a change occurs with investments, which seems to be applied differently according to product provider. I have seen no explanation from the FCA why this has been introduced”?
“I think there is an argument for the regulator to ask companies that stop trail commission payments to justify why they have done so, in the interests of TCF”.
“I always viewed trail and renewal commissions as a form of contractual deferred compensation. The providers retain their business largely through the efforts of their reps/advisers/agents so they had to provide some inducement to maintain servicing . That inducement came in the form of trail and renewals. The less paid in trail and renewals the more vulnerable was their business long term”.
So, do advisers just sit there and let it happen? Does anybody care? Politicians are not interested until the FCA review happens.
You can read my mail trail to Mark Garnier MP on the matter. It spells out clearly the issues and why advisers would find the removal catastrophic yet he cannot do anything and neither can parliament.
This is like a house of cards about to fall down as a single ‘teeny tiny’ card is accidently touched!! An unintended consequence
What do you want doing about it?
When do you want it done?
As Britney sings ‘Give me a sign”! Because at Panacea Adviser we want to see some protective action now!