The majority of advisers would welcome the introduction of customer agreed remuneration according to Zurich.
The firm surveyed 910 advisers and 62 per cent said they would adopt CAR, provided it included commission offsetting and provided financial incentives such as reduced regulatory fees were offered in return.
The reseach shows commission remains a popular choice for adviser remuneration with 70 per cent indicating that a combination of initial and trail commission would be their ideal choice of remuneration. Only 14 per cent of advisers said they would adopt a fee only business model.
Advisers were split over whether they would be prepared to study for further professional qualifications. Nearly half of those surveyed said they were not prepared to study further to obtain chartered status in order to avoid paying more for professional liability insurance. Almost 30 per cent said they would simply pay a higher rate of insurance to remain in the industry.
While most advisers said they would stick it out if the Retail Distribution Review proposals were introduced, 11 per cent said they would prefer leave the industry rather than embrace the new rules.
Zurich Intermediary Group managing director Chris Gillies says the firm supports the FSA’s desire to encourage higher standards of training and professionalism but has recommended a six year transition period until the higher standards become mandatory and positive incentives, such as reduced regulatory fees for those who achieve the new standards more quickly.
Gillies says: “This will be important to ensure that experienced financial advisers do not leave the industry, but have sufficient time to make the transition and can see clear business benefits from doing so.”