An Aifa and ABI working group set up to thrash out agreed contractual
terms bet-ween providers and IFAs may recommend that commission cannot be
altered on existing contracts without prior notice.
The group, made up of IFAs and providers, is trying to create a standard
set of terms of business and will aim to put its recommendations to the
industry by the end of the year.
Aifa director general Paul Smee says: “The group is not ready to make its
recommendations as this is a time-consuming and laborious process. We will
make draft recommendations later this year.”
Scottish Life head of communications Alasdair Buch-anan says: “In
principle it is fine but once it gets down to detail, the difficulties
could surface. Provided it has a reasonable remit, it could help IFAs and
providers. But if it goes too far, it could hit difficulties if it tries to
set standard commission terms.”