Skandia to keep paying trail until 2016 deadline

Skandia is to allow advisers to take trail commission until the April 2016 deadline, putting it on a collision course with rival platforms intending to bulk switch clients as early as next month.

Under rules set out in the FCA's platform paper published in April, trail cannot be retained by platforms after April 2016, meaning that commission payments for products that fall under these rules will cease at that point. However, Skandia said today that it would not "expedite" the movement of its bundled book to an unbundled model before advisers are ready to do so. Skandia said only ISA and Collective Investment Account (CIA) products on its platform are affected by the rules, adding it will be using the sunset period between now and April 2016 to give advisers time to "manage the...