Add new comment

These product providers are contacting clients who may be paying the adviser grandfathered trail commissions and are directly seeking to influence the client based on the expectation the law may change and on the intent of the proposed law.
They are effectively stating to clients that they support the proposed change in law surrounding grandfathered commission payments and support community expectation!
But what they are really doing is subliminally coercing the client to act and framing the reason around the clients best interest. By framing the argument on this basis, it automatically causes the client doubt, concern or confusion that their current product may not be in their best interest and so encourages the client to contact the provider and potentially bypass the adviser.
What the product provider does not know is actually what is in fact in the clients best interest because they don't know the client or their circumstances....they have never met with them, never assessed their position and never provided any advice.
If the product providers are coercing or influencing the client to rebate commissions or turn off grandfathered trail payments prior to legislation requiring this to occur, then they are complicit in encouraging the client to alter their position and to withhold remuneration payments that advisers still have a legal right to receive.