Skandia has cut the level of trail commission paid to advisers on four bonds from 0.35 per cent to 0.25 per cent, claiming the current level of trail is unsustainable.
Trail commissions on the Invesco Perpetual corporate bond, Invesco Perpetual global bond, M&G corporate bond and M&G strategic corporate bond have been cut in a move which Skandia says brings it in line with other platforms.
For fund based commission the trail will be reduced by 0.1 per cent. Where a nominated trail agreement is in place, the difference will be funded from units in the client’s investment. Skandia says there are no current plans to reduce the level of trail paid on any other funds.
A Skandia spokeswoman says: “The reason we are removing the higher level of trail commission is to bring them in line with what is offered directly by the fund group and other platforms.
“At the moment we are paying a higher level of trail and keeping less margin than other platforms are keeping which is why it is unviable for us to continue. There are no plans to reduce the level of trail on other funds.”