Lighthouse says advisers’ legacy trail should not be switched off as axing the payments rarely provides any benefit to clients.
Chief executive Malcolm Streatfield says advisers have had to implement many changes as a result of the RDR and should be allowed to rely on historic trail to provide part of their recurring income.
Streatfield says: “Advisers have had to make a huge amount of changes over the last couple of years and we need a period to allow that to bed down.
“Lots of businesses have acquired policies that come with recurring trail and I see no reason why that should be disturbed. Providers that think they can turn it off at a defined date will incur the significant angst of the adviser population.
“If that payment is cut off where does it go? It rarely gets passed back to the client so it should just be left alone.”
Barretts Financial Solutions senior partner Kim Barrett says: “The industry needs to realise the regulator is going to switch trail off and it will happen quicker than a lot of advisers expect.”
For our full interview with Malcolm Streatfield click here