Firms unprepared for end of trail commission

The chief executive of Panacea Adviser said research conducted by his firm had revealed the majority of advisers felt unprepared and unsure of what steps to take to phase out trail commission by April 2016.

He said: “The removal of trail commission is not fully understood by financial advisers and the overwhelming lack of clarity has meant they are simply not ready for this industry upheaval.

“Many advisers have stated they feel this rule change is an injustice and that contractual agreements that have been in place for years have been set aside without any consultation with the adviser community.”

Mark Cooke, adviser at Exeter-based MSC Financial Services, said: “I am a small sole trader and have built up a large trail to help run a business model that can service all types of clients – even those who cannot now afford the fees I have to charge.”