Your Industry  

Trail’s sunset clause brings income worries for advisers

Trail’s sunset clause brings income worries for advisers

Trail commission is the biggest income worry for advisers, with many still not ready for the sunset clause coming into force, Nick Eatock has said.

“With the clock ticking and such significant levels of income still coming from trail commission, there is a need for advisers to communicate with clients and move them to a fully fee-based model, Intelliflo’s executive chairman has said.

A survey of 196 users of Intelliflo’s adviser software, revealed trail commission remained an important aspect of income for 93 per cent of advisers. According to the research, a third it represented less than 10 per cent of income but for 46 per cent, it accounted for between 11 per cent and 30 per cent, while 20 per cent said it accounted for a third or more of their income.

Article continues after advert

It also showed that only 27 per cent had contacted clients to advise on the changes, while 34 per cent planned to by the end of 2015. However 25 per cent said it would be the end of March 2016.

Adviser View

David Gibson, financial adviser at Northern Ireland-based Gibson Financial Planning, said: “Depends on the platform used, some make it very easy but some legacy providers are also not geared up for it. It does involve contacting clients also, which is time-consuming. If worried, they should be tackling it now, rather than leaving it, and they should not worry about income.”