Ten need-to-knows about the trail commission rules

The FSA has finalised its guidance on when firms can (and can not) receive commission post-Retail Distribution Review (RDR).

Here are ten need-to-knows about the guidance: 1 Commission on retail investment products will be banned from 1 January 2013, but trail commission due on pre-RDR assets can continue unless new advice is given. This includes where changes take place automatically (auto portfolio rebalancing, for example) following an agreement between adviser and client. 2 But there are one or two caveats: What happens, for example, when new advice is given which does not lead to a change to the product or investment amount? In this instance, the FSA asks for clear evidence that the commission payments ...