FCA planned VCT/ EIS trail commission reforms - thoughts?

My view is that trail commission on VCTs and EIS is hard to defend if the adviser or distributor is no longer delivering clear, ongoing value. These are complex, higher-risk products, so if trail genuinely pays for ongoing monitoring, client support and servicing, firms will argue it has a purpose. But if it has become legacy income without a live service attached, then the FCA is right to question it.

If these commissions were removed, the immediate impact could be commercial pressure on parts of the distribution chain and less enthusiasm to promote these products, especially where firms rely on trail economics. But the counterpoint is that the market should not depend on opaque legacy payments to function. Consumers need to understand what they are paying for, and firms should be able to justify it clearly. So for me, the key issue is not commission versus no commission in the abstract, it is whether the ongoing payment matches ongoing value in a way that is transparent and fair.