Aviva will offer commission quote guarantees of up to three months as part of transitional arrangements for advisers ahead of the RDR.
Aviva has today published details of its approach to adviser charging (see table below). The provider plans to allow advisers to take commission for as long as possible by offering guarantees on commission quotes, provided the advice process is completed before December 29.
The length of the quote guarantee period varies from 30 days for bonds to three months for individual pensions.
Aviva intermediary director Andy Beswick says: “The broad principle is that the advice needs to have happened before the end the year.
“The transitional arrangements are to give flexibility to advisers because there will be a period after the advice is given where paperwork and other administrative processes need to be completed.
“The guarantees vary because the time it takes to complete a transaction is different for different products. For example, the transitional time for a GPP is longer than an investment bond.”
Aviva will facilitate adviser charging on all of its products except collective investments.
In addition, the provider is replacing the portfolio investment bond with an investment growth and income product. The existing product will close to new business on December 29.
Beswick says: “The key product we are going to replace is the investment bond. We are bringing in a new, simple investment bond to replace the existing product.
“The remainder of the products are being upgraded.”