PIMS 2010: Time is running out for fee transition
Share
Macquarie has warned advisers that there are 30 months left until the RDR deadline but it will take firms 36 months to transition to a fee-based model.
Head of financial planning John Baxter told delegates onboard PIMS today that it is critical for advisers who have not already started the transition process to act now.
He said there are advantages and diasadvantages to each fee structure, but assured advisers that fees will not stifle their earing power.
He said: “Every adviser who implements a fee-based system successfully earns more than they ever did with commission. Do not think it will limit your earnings.”
Baxter said the biggest mistake firms make is deciding how to charge and shoehorning clients into a specific structure.
He said: “Advisers have to decide what their business proposition is going to be, whether that proposition will be attractive to existing clients, the price at which the firm can deliver the proposition profitably and whether that price represents value for money for clients.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
