View more on these topics

Scottish Widows call to delay legacy commission ban

widows.gif

Scottish Widows is calling for the ban on legacy commission to be delayed until January 1, 2014, possibly aligning it to the introduction of the new platform rules.

The FSA is set to publish guidance consultation on legacy business later this month.

In March, the regulator wrote to trade bodies to clarify that legacy commission will be banned under the RDR although trail commission can continue.

The FSA is also yet to clarify its position on platforms. In its policy statement last month, it said it is “desirable” to ban both cash rebates and payments to platforms but it needs to conduct further research on the implications for consumers. It added that any rules on payments will not come in until after January 1, 2013.

Scottish Widows head of distribution development Robert Kerr says: “There is an argument for bringing in the RDR for new business at the original deadline of January 1, 2013 but leaving the legacy bit until a year later.”

The Association of British Insurers wrote to the FSA earlier this week to push for a delay on the legacy commission ban.

ABI director of life and savings Maggie Craig says: “We cannot change the rules at a moment’s notice without customers suffering disadvantage so we are asking the FSA for more time.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com