The Financial Services Authority (FSA) will allow advisers to continue to take trail commission after 2012 on fund switches within life policies set up pre-RDR.
The FSA had already banned 'legacy' commission post-RDR. This sees commission due on assets set up pre-RDR turned off if there is any new advice on the assets. But it said there was still confusion among advisers and providers on cases where new advice leads to no changes being made to a product, and where the advice relates to fund switching within a life insurance product such as an investment bond. It said commission will still be payable on fund swtiches within life policies. However, all other fund switching will not allow commission to be paid, unless the client chooses to do so...
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