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&#39Sandler must see value of IFAs&#39 – The Marketplace at Bradford and Bingley

Rather than submit a written response to the Sandler review, National IFA The Market-place at Bradford & Bingley was visited by the review team. The team asked B&B about its commission structure, how its product panels are formed and how it researches the funds it recommends.

B&B says the review team was especially interested in how it remunerates its advisers. The IFA has equalised commission payments to prevent product bias and advisers are awarded credits which are equivalent to the commission received which go towards an annual bonus. What this means in practice is that on life and pension products, B&B awards its advisers the same rate of commission credit, regardless what provider they recommend. On investments, the IFA also awards the same level of credit whether a bond, unit trust or Isa is selected.

Advisers working for B&B are paid basic salaries. It is only their bonus structures which are determined by commission.

The review team also wanted to know how the IFA selects its provider panels, which it does on the recommendation of external researchers, who are not told of the commission levels that various providers pay.

B&B technical director Rob Guy says: ” I don&#39t know how they selected what firms to visit, but we were more than happy to throw our doors open to the review team.”


Market forces

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