Opened consultation on issue last June
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.
Legacy commission still accounted for more than half of adviser income at end of March, according to research released today.
Advisers and clients could get "caught out" by the new tax treatment of payment of trail commission, according to James Hay Partnership.
Legacy trail commission may create a "moral hazard" in which advisers encourage investors to stay in investments longer than they should, analysts at Barclays have warned.
The FSA has finalised its guidance on when firms can (and can not) receive commission post-Retail Distribution Review (RDR).