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The move followed Clerical Medical's announcement yesterday (Thursday 3 July) that it was planning to "switch off" the trail commission to hundreds of intermediaries after clients informed them they had not had contact with their IFA.

Speaking exclusively to Money Management, Chris Cummings, director general of Aifa, said that if providers wanted to act in this way, that they should expect to shoulder customer complaints in full, higher marketing costs and an intermediary backlash.

He added: "What would happen if a customer complains? It can't be to the intermediary. They have, in effect, fired their IFA. It means that provider is now responsible for the complaint.

"The provider approached that customer and is signalling that it wants to have all responsibility. So any unhappiness must now be resolved between the client and the provider."

Last year 67 per cent of all retail financial services went through the intermediary channel and, accordingly, Cummings advised providers that are mulling withdrawing commission to think the strategy through.

He explained: "It is an unfortunate decision. I can imagine that decisions get taken for cost saving motivations, but clients don't get to the provider by accident but asking consumers if they have heard from their IFA is not the same as engaging with the IFA.

"Consumers often forget that their IFA has been in touch and often turns down the opportunity for an annual review. I would encourage any organisations to engage with Aifa before taking such action."

Cummings said that those manufacturers treating intermediaries in this way may find they lose a significant amount of business when they come to do their end of year statistical analysis.