Only around a quarter (23 per cent) of 200 advisers polled by Intelliflo believe the return of commission is a bad idea.
The adviser management software firm found more than a third (37 per cent) thought the return of commission may be a good idea, but it would depend on which products it relates to and how it has to be implemented.
Almost one in 10 (8 per cent) said they thought it was a very good idea.
This relates to the admission by the Financial Conduct Authority’s acting chief executive last month that some form of commission being re-introduced for investment products was on the table as part of the Financial Advice Market Review.
The Financial Advice Market Review is looking at ways to bring advice back to the mass market.
Nick Eatock, Intelliflo’s executive chairman, said advisers who traditionally helped people with small amounts to save via commission-based products now find they cannot service this type of client.
“The fee-based model doesn’t work for them because there is resistance from clients to writing out cheques for advice upfront.
“Many advisers believe this is creating a barrier to helping people invest for the future and is fuelling the growing advice gap.”
Initial industry reaction appeared to be against a return to pre-Retail Distribution Review setup, although networks Intrinsic and Tenet, as well as IFA support services group Simplybiz, all welcomed the prospect of commission being reintroduced.
peter.walker@ft.com
