Leave trail commission alone, Scottish Life tells FCA

Trail commission has a "genuine and legitimate place" in adviser remuneration and the Financial Conduct Authority (FCA) would be wrong to ban future payments on undisturbed pre-Retail Distribution Review (RDR) business, according to Scottish Life.

The provider said it is in favour of "maintaining the current stance on trail, even if it comes with a requirement to honour existing commission agreements or refund the difference to the client". Minutes from the Financial Services Authority's final board meeting in June show regulators are considering what detriment continuing to permit trail commission could have on consumers. Among the topics discussed at the meeting was "whether the lack of an end-date for the payment of trail commission on pre-RDR business might lead firms to act in ways that risked poor consumer outcomes". S...