The prospect of commission being reintroduced has been raised as the Financial Advice Market Review takes place.
With speculation that a return might be recommended by the panel conducting the review, the FCA’s interim chief executive Tracey McDermott appeared not to rule out such a move in a radio interview, though the regulator later insisted that it was not the case.
Adviser management software company Intelliflo asked professionals for their views on the FAMR.
There appeared to be some support from about 45% of the 200 advisers who took part in the survey, with 8% saying they thought it was a very good idea.
More than a third (37%) said they thought it may be a good idea but it would depend on which products it relates to and how it has to be implemented.
Only around a quarter (23%) said they were unconvinced the reintroduction of commission would be in the best interests of consumers.
Less than a quarter believe the reintroduction would be a ‘bad idea’, with 23% saying it would be a backward step for the image of advisers.
Nick Eatock, Intelliflo’s executive chairman, said: “Advisers who traditionally helped people with small amounts to save via commission-based products now find they can’t service this type of client.
“The fee-based model doesn’t work for them because there is resistance from clients to writing out cheques for advice upfront. Many advisers believe this is creating a barrier to helping people invest for the future and is fuelling the growing advice gap.”