View more on these topics

Ailo research aims to reveal scope of mirroring RDR charging abroad

The Association of International Life Offices is considering proposals to fund research into the remuneration models of overseas advisers in light of the changing UK regulatory landscape.

Money Marketing understands that the proposals are being considered by Ailo and that this has been partly prompted by the FSA’s proposals on adviser-charging in the retail distribution review.

Ailo is understood to believe the RDR could be mirrored in other countries, which would lead to a move away from commission-based products towards fees. Proposals are being considered for research to be carried out by external consultants and if it goes ahead, the research will be spons- ored by Ailo.

AES International managing director Sam Instone says: “I think it is a fantastic idea and the market is so back- ward on this issue that it was bound to happen sooner or later. Up-front commission is detrimental to treating customers fairly and damaging to the reputation of inter- national advisers in the market. In fact, I would go as far to say that it is tantamount to organised financial crime.

“How can a half-hour meeting with an adviser getting 9 per cent commission on a £100,000 investment be justified when there will be no ongoing service and when the advice will be pretty bad? I think it is an inevitable development and companies that have not started to look at this issue are likely to fall by the wayside. Change is inevitable and if they don’t keep up with it, then life companies are likely to become redundant.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com