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Any payment method suits me

As an adviser who charges fees and takes commission (invar-iably partially rebated), I really do not care how I am paid as long as it is sufficient (in my view) for the work undertaken. I get irritated by providers manipulating their charging and remuneration structures to suit those who are coy about how much they earn. Exit penalties to suit networks? Buying business with enhanced rates for volume – network pressure?

However, if fees were to become the norm, what about VAT? I am very careful to ensure that my total fee income stays below the VAT threshold. VAT is not a problem for corporate clients and those owning their own (VAT-registered) business. But for those people for whom all these reviews are supposed to benefit, they will just end up paying (at least) 17.5 per cent more, that is, if they are going to seek advice at all.

On single-premium business, I am more than happy to have as much as 3 per cent – often a great deal less – and trail of 0.25-0.5 per cent is very welcome. It is the insurance companies who prefer regular premiums. It gives them a secure cashflow, client loyalty and provides an opportunity to puff up their accounts.

Harry Katz

Norwest Consultants,

Edgware, Middx


IFAs faced with reviewing income stream

Consumers will be even more confused as to the status of the advice they are receiving if the FSA&#39s proposals on polarisation and commission are adopted, and IFAs may have to divide their businesses to survive.Jackson Batten Financial Group Managing director Robert Ratcliffe says: “IFAs will be considering dividing their businesses in two halves – […]

Genesis Home Loans 2-year fixed

Genesis Home Loans, fixed rate mortgageFixed term: 2 yearsFixed rate: 5.45%Minimum loan: £25,001Maximum loan: £250,000 – up to 90% LTVIncome multiples: 3.25 +1 , 2.75 x jointArrangement fee: £325Redemption fee: 6 months interest at SVR during fixed periodConditions: max 80% LTV first time buyersIntroducer&#39s fee: refer to packagerTel: 01832 275 044

NDF goes for top 10

NDF Administration has introduced the NDF higher income & growth plan, a guaranteed equity bond that is linked to the 10 largest stocks on the FTSE 100 index over a five year term. These include companies such as Barclays, HSBC, Shell and Vodafone. Investors can choose annual income of 9 per cent, monthly income of […]

Bankhall seminar aims to draw DBS members

Bankhall is holding a marketing seminar for disgruntled members from rival DBS network offering them financial incentives if they switch en bloc.Many members are up in arms about how they are being treated by DBS following the network&#39s increase in fees before Christmas.Bankhall aims to exploit this, claiming it sees this as an opportunity to […]

China’s economic bounce may already be over

By Mike Riddell (17 May 2016) Most people would explain the rally in global risky assets since mid-February as being primarily down to the spectacular volte-face from the Federal Reserve, where Janet Yellen (and others) dramatically toned down their narrative that the Fed would be hiking rates as many as four times in 2016. This explanation […]


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