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AWD throws down gauntlet to providers on CAR

AWD is introducing customer-agreed remuneration and challenging providers to apply it to in-force policies as well.

The national IFA is also white-labelling Cofunds as its wrap and introducing minimum advice service levels nationally.

Group chief executive Mike Kirsch will warn the FSA it needs to concentrate on ensuring advisers are acting as the client’s agent in its retail distribution review submission. He says this should be the priority rather than exams or capital adequacy increases.

He believes in increasing professional standards but disagrees with distinct professional financial planner and general financial adviser categories.

Kirsch says: “We will be early adopters of the CAR concept within the RDR. We should take the high ground so clients know what services they are getting and how they pay for them in initial and trail payments. This should be explicit.”

He adds: “The company’s drive towards ever increasing levels of ongoing service means ongoing charges need to be fully reflective of the advice and services provided. This means providers and fund management groups need to accommodate this, not only regarding new business but existing business. This is vital with customer agreed-remuneration.”

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