Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Legacy commission rules to cost less than the £460m feared

Legacy commission rules to cost less than the £460m feared

Changes to commission on legacy assets will cost the industry less than the £460 million previously estimated, according to an analysis published by the Financial Services Authority (FSA).

Firms with large amounts of legacy business, such as insurers, feared that a total ban on commissions would force them to overhaul their entire legacy systems at great cost.

The FSA previously estimated additional compliance costs for the industry would reach £460 million.

But the regulator has now said firms can lower compliance costs by only amending systems for larger books of business and for the limited pool of products where top-ups are more likely.

The UK watchdog announced in today’s policy paper RDR Adviser Charging – treatment of legacy assets,  that only new money going into these products, known as topping up, will be subject to a ban.

Advisers can continue to receive trail commission on legacy assets sold before the December 2012 Retail Distribution Review (RDR) deadline.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter