With one year to go until trail commission is switched off, a survey with 196 users of Intelliflo’s adviser-specialist software, Intelligent Office (iO) has found that trail commission remains an important aspect of business income for 93% of them.
For a third (34%) it represents less than 10% of income but for almost half (46%) it accounts for between 11% and 30%, with one in five (20%) saying it currently accounts for a third or more of their income.
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In terms of contacting clients to advise of the forthcoming changes, just over a quarter (27%) have so far completed this, with a third (34%) planning to do this before the end of 2015.
However a quarter (25%), think it will be the end of March 2016 before they have contacted all clients on the issue.
Intelliflo’s executive chairman Nick Eatock comments: "The findings of our survey highlight the challenges faced by advisers as the full range of RDR related changes come into force. With the clock ticking and such significant levels of income still coming from trail commission, there is an urgent need for advisers to communicate with clients and move them to a fully fee-based model."
In terms of sources of income, the survey found that the majority (31%) have between 11 and 20 income streams, with more than a quarter (27%) having over 31 different sources.
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By GlobalDataSeven out of 10 (69%) of those polled are in firms with less than four advisers, where 95% of them are receiving trail commission.
