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A complete ban on trail will damage business: poll

A poll of 430 advisers by GfK and online adviser community Panacea Adviser found that 24 per cent agreed ‘slightly’ that a ban would render their firm unsustainable, while 22 per cent agreed ‘strongly’.

Some 47 per cent of respondents agreed that a ban could make their business unsustainable if they tried to sell up.

Martin Grimwood, GfK divisional director for life, pensions and investments, said: “While one of the objectives of the RDR was to make the cost of advice very clear, our research suggests strongly that the adviser market still needs time to adjust to the introduction of the RDR.

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“This is the wrong time to consider changing the approach to trail commission.”

Derek Bradley, chief executive of Panacea Adviser, said: “With so many advisers clearly concerned about the sustainability of their exit plans should trail commission be removed, the regulator needs to consider long and hard whether this is a wise, or even fair, change in regulation.”