Old trail income under review

The question of whether it is appropriate for RFAs to continue to receive income for products when they could not offer those clients advice under regulation was first raised in 2008.

MBIE said it would be part of its wider assessment of advisers’ remuneration. The FAA review began this year.

A spokeswoman said whether commission should be restricted or banned would be canvassed in the issues paper that is to be released as part of the review.

Adviser and former PAA president Peter Leitch said there were a number of angles that would need to be considered if the trail commissions were tackled.