7 Oct 2013
Will the removal of trail commission have a negative effect upon your business?
If our current snap shot poll is correct, as at 10.30am on 22nd October with nearly 800 votes cast, 90% of those that have responded say it will be catastrophic.
This poll has not seen much publicity yet.
Logic must tell anyone with any degree of intelligence that whatever the rights and wrongs of removal are, the destruction by retrospection of a huge chunk of intermediated distribution revenue and value is neither right, fair or reasonable. And if this is the outcome, it is not good for consumers either.
How will it affect your business, will it destroy your business? Is the FCA aware, are politicians aware, do they care?
Recently we heard FCA chairman John Griffith-Jones saying " “Yes, there may be side effects or unintended consequences and over the coming months we at the FCA will monitor developments in the market extremely closely. In particular we are alert to the advice gap issue and actually very interested to see where you, as part of a very competitive market place, go for new solutions that might meet the advice gap customer needs.”
Many of the unintended consequences (and this is one of them) as Griffith-Jones put's it, were quite avoidable and were in many cases forewarned consequences. Now would be a good time for some meaningful listening and learning on the part of the regulator to avoid, not an advice gap, but an advice chasm.
As with almost every significant well intended aspect of UK regulation over the years, this may well prove to be an avoidable catastrophe from start to finish, with nobody left to man the lifeboats in the dash for the safety of shore.
Hopefully, I am wrong and somebody on the bridge at Canary Wharf will be able to turn hard a'port before the rocks are hit?