Broker expectation of commission ban significantly increases

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An industry-wide survey has shown a notable increase in those who believe commission will disappear in the protection industry.

A Protection Review poll of life office, reinsurer and intermediary views, showed while 70% believed commission would remain in some form, there was an increase from 13% to 30% of those who foresaw it disappearing.

Tony Columbine, director of advice firm Relevant Life Policies, said he could not envisage a commission ban as protection was very much sold and not bought.

He said: "A commission review of some kind could happen but not in the near future I do not think. And I cannot see how it could work if it was scrapped altogether.

"If there is going to be any further review by the new regulator on the protection industry then it would be better focused on qualifications. Higher qualifications would improve the quality of advice currently."

In March, adviser network Tenet warned at a Marketforce event that FCA removal of commission on protection products would be a "complete disaster" but could happen.

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Nicola Culley

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