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Avelo to lobby providers over pension quote concerns

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Avelo is planning talks with insurers after advisers raised concerns about the low number of pension quotes being provided by the technology firm when an initial and ongoing adviser charge is levied.

Fund Management Ltd IFA Ian Head contacted Avelo on 4 February after experiencing problems using its online quotation portal.

He says pre-RDR the system would deliver up to 12 quotes from different pension providers on an initial and ongoing commission basis.

However, Head says the portal now delivers far fewer quotes when the adviser is levying a combination of initial and ongoing adviser charges.

Head says: “I think a lot of advisers will want to levy a combination of initial and ongoing adviser charges, so it seems to me incredible that Avelo cannot deliver illustrations based on this model.”

Avelo says the problem stems from the product providers it relies on to supply quotes for advisers.

Avelo portal business manager Sue Chapman says: “People can select initial and ongoing adviser charging on our portal but the number of providers who are returning quotes on that basis is very limited. Our expectation during this year is that providers will make more products available.

“This issue has been pointed out by a number of advisers and we will interrogate our own management information and get feedback from advisers on this. In parallel, we will be speaking to providers and asking why they are not producing quotes on a combined initial and ongoing fee basis with a view to encouraging providers to offer better product support to advisers.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. RDR was forced on providers and advisers by the FSA with no thought to how it will work and the cost it would involved.

    Many providers will no doubt be questioning why they should spend millions on new systems knowing full well that the powers that be could make an about turn at any moment and being under constant pressure to reduce costs and charges by the powers to be whilst competing with a tax payer subsidised rival in NEST.

  2. Anonymous it was indeed. But perhaps the providers could use the money they are making from switching off commission payments to advisers in the event of “disturbance” cause they certainly aren’t rebating it to clients – very TCF – well done FSA.

    Or one could take the more cynical view. Providers calculate that fewer regular premium plans will be sold now there is no commission to reward advisers & as clients now have to pay up front for advice in a way that creates an incorrect perception of poorer value, they will not get back the cost of developing Avelo’s quote system…

  3. William Watling 1st March 2013 at 1:25 pm

    Interesting! Synaptic Comparator has 18 on platform + 5 off platform live signed off SIPPs able to do comparative projections for % initial AC & % ongoing FUM AC. Shows £ val of ACs over full term.

    It also has 5 on platform PPs & 1x off platform PP signed off with live projections.

    Details of each product (PP, SIPP, on & off shore bonds, etc) on & off platform by each of the 13 types of AC supported across the market is also shown & is on Synaptic P&F (without the projections in Comparator).

    Understanding which providers can support the AC style an adviser wants to use is critical to save wasted time & effort.

    Live projections can also take in to account 100s of other features e.g. prem type, frequency, etc

  4. William Watling 1st March 2013 at 3:34 pm

    Interesting! Synaptic Comparator has 18 on platform + 5 off platform live signed off SIPPs able to do comparative projections for % initial AC & % ongoing FUM AC. Shows £ val of ACs over full term.

    It also has 5 on platform PPs & 1x off platform PP signed off with live projections.

    Details of each product (PP, SIPP, on & off shore bonds, etc) on & off platform by each of the 13 types of AC supported across the market is also shown & is on Synaptic P&F (without the projections in Comparator).

    Understanding which providers can support the AC style an adviser wants to use is critical to save wasted time & effort.

    Live projections can also take in to account 100s of other features e.g. prem type, frequency, etc

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