Canada Life will continue to facilitate trail commission on its range of onshore and offshore investment bonds. In contrast to other providers turning off trail commission, Canada Life is emphasising its position that an adviser’s remuneration is a matter for them and their clients.
Canada Life has a wide variety of charging options, designed to be flexible and to allow advisers to be paid in the way they and their customers choose. Top-ups and fund changes are able to be made without it impacting on advisers’ existing remuneration.
Nick Harding, Propositions and Marketing Director, Wealth Management and Retirement Income at Canada Life said:
“Ultimately, how advisers are paid is a matter for them and their clients as only they know the level of service being provided. We’re aware that many advisers provide a great amount of work on legacy business with client meetings, complementary advice and on-going reviews. If they and their clients are happy that trail commission is sufficient payment for these services, then that should absolutely be an option available to both parties. Unless the ruling changes on this, this will continue to be the case with our products.
“Everything we have developed in our post-RDR offering has had the overriding objective to provide the most comprehensive range of adviser charging options possible on all of our core products and therefore support advisers as much as we can. This remains the case.”
Derek Bradley, CEO, Panacea Adviser said:
“We have been running a poll on the Panacea website, to our community of 18,000 advisers and paraplanners, looking at the potential impact of the removal of trail commission. Nearly all respondents said it would have a negative impact on their business, whilst 90% said that the ramifications would be catastrophic.
“We are therefore very pleased with Canada Life’s decision to maintain the practice and agree wholly that it is a matter to be discussed between an adviser and their client.”