Consumers may switch off trail commission, says FSA

Consumers could switch off trail commission if proposals from the FSA's Retail Distribution Review a...

Consumers could switch off trail commission if proposals from the FSA’s Retail Distribution Review are accepted. Mike Yardley, chair of the Impact of Incentives working group contributing to the review, said that if the adviser and customer agree trail commission is to pay for ongoing advice, the customer should be allowed to stop paying it if they are not happy with the service. “Is trail a deferment of an initial fee or a payment of services still to be delivered?” he asked. “We felt that as long as there is clarity as to what the trail commission is for, it could be switched off.” ...