Clients to benefit from commission ban: Poll

The poll, which received 16,837 responses, asked ifa readers whether a ban on grandfathered commissions will negatively or positively affect clients, or whether it would have no effect.

The poll results indicated that ifa readers overwhelmingly believe clients would benefit from a ban on grandfathered commissions, with 12,674 respondents (75.3 per cent of the overall cohort) selecting this option.

Respondents who believed such a ban would result in a negative outcome for clients accounted for 23.2 per cent of the overall responses, with 3,914 readers selecting this option.

Only 1.5 per cent, or 249 respondents, believed a ban on grandfathered commissions would have no impact on end clients.

The results of the poll come as both BT and Macquarie announced they would each be switching off grandfathered commissions to their salaried advisers.

In May, both the FPA and ASIC came out in support of removing grandfathered commissions, with the FPA stating at the time that allowing grandfathered commissions had “led to an environment where many clients are paying fees and yet receiving no services”.