Abraham Okusanya of FinalytiQ, shares the latest Investment Association Annual Survey, which is packed with facts and figures on the state of investment nation.
One of the many stats in the survey suggests that in 2014, fund platforms accounted for 55% of the UK gross retail sales (rising from 49% in 2013) and a whopping 89% of total net sales, bringing in around £18.4billion in net inflow.
But I digress. Buried on page 96 of the report is the suggestion that the new MiFID rules could result in a complete ban on commission from pre-RDR off-platform business.
If this turns out to be FCA’s stance, it’s bad new for advisers receiving trail from assets held directly with fund managers and potentially lifeco pensions. While MiFID II itself doesn’t apply directly to insurance-based investments and personal pensions, the FCA has already made its view very clear in DP15/3 Paper “that insurance-based investments and pensions should be governed, in principle, by the same conduct of business rules as MiFID II investments.”
Many advisers are yet to deal with the PS13/1 sunset clause of platforms. We heard recently that, just 7 months before the deadline of April, 2016, around a third of assets on Cofunds are still held in share classes paying trail commission! Imagine if advisers have to deal with a ban on trail commission on asset held directly with lifecos and fund managers, with only a few months’ notice?
Scary stuff!Download the Investment Association Annual Survey