Sunset clause brings income worries for advisers

By Jo Gilbey
Find me on: LinkedIn Apr 1, 2015 1:50:00 PM


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.

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.

Nick Eatock, Intelliflo’s Executive Chairman, 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. 

Seven out of 10 (69%) of those polled are in firms with less than four advisers, where 95% of them are receiving trail commission.

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About Intelliflo

Intelliflo ( has been providing information technology services to financial services companies since its formation in 2004. Its leading web-based business management software, Intelligent Office, helps financial businesses large and small to improve efficiency and increase profits. Intelligent Office supports over 1,320 firms and 11,450 users with assets under advice of £181 billion (as at 31 December 2014).

In July 2013 HgCapital, a leading European private equity investor in B2B technology companies, became a majority shareholder in Intelliflo Ltd. HgCapital has a wealth of expertise in developing web-based software businesses and is committed to supporting the next phase of Intelliflo’s growth.

In March 2015 Intelliflo was listed among the top 25 best performing privately owned technology companies in the UK mid-market. The list is compiled by Megabuyte’s independent and highly-regarded research team and is based on financial performance and long-term potential.

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