Designed with input from a number of industry experts, the guide has also been reviewed by providers, advisers and support services alike to ensure its credibility. It captures, in a single document, definitions, legal and compliance considerations and provides a focused framework in order that advisers can position their strategies effectively.
Derek Bradley, CEO of Panacea Adviser, said:
“Following a snapshot poll on the Panacea website at the end of 2013 and an adviser survey in March 2014 on the removal of trail commission, it quickly became clear there was a distinct lack of understanding about what this might actually means for advisers.
“Following a meeting with the FCA in March to discuss the issue further, we wanted to ensure there was some clarity given around this subject as it is the view of many that it is only a matter of time until either the regulator or providers remove trail commission entirely.
“The FCA sees trail as being something that should see an ongoing service and that no further clarity is required – something we beg to differ on as this is not necessarily contractually the case with legacy trail, especially where firms did not take initial commission. However some purists may take a very different view and, from our research, it certainly is not easy for many advisers to understand.
“We have therefore produced this independent, free to download guide to help support advisers through this thorny, and seriously contentious, process. It will hopefully provide them with a range of information on the issues to consider and sets out a potential course of direction which advisers can follow going forward.”
