Henderson Global Investors is delaying payment of around £4m of trail commission to 7,300 advisers due to an “RDR audit”.
The trail, which was due in mid-June, relates to the period between November and April and has been held back to ensure all payments are RDR-compliant.
Henderson says it cannot cut off a portion of commission to make the checks so all payments have been delayed.
The investment house says the delay is a one-off exercise as it is the first set of commission payments it has processed since RDR implementation.
Henderson commercial director Stewart Cazier says: “There are certain types of new business where it is still permissible to receive commission such as execution-only or offshore business and in those cases where there is, for example, an adviser claiming a commission payment, we look for a declaration that this is non-advised and execution-only.”
“The reason we have had problems is that this is the first time we have done all of these checks.”
Cazier adds he expects the payments to be started again within the next couple of weeks.
Barretts Financial Solutions senior partner Kim Barrett says: “The lack of communication from Henderson on this problem is arrogant in the extreme.”
In March, Fundweb sister title Money Marketing revealed Ignis Asset Management, Jupiter Asset Management, Artemis Investment Management, Henderson Global Investors and M&G Investments were all cutting off trail payments on reinvested income even if it related to advice given before the RDR deadline.