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Broker Talkback

Should the FSA change its RDR proposals to allow factoring, whereby providers can pay an up-front sum to advisers that is deducted from the product over time?

Yes 50%
No 50%

Yes “But I would like to see a steer away from the current commission arrangements that providers have set out for the sale of products.”

Nick Self, IFA Financial Services

Yes “Although I am not keen on factoring, I have not seen too many good examples of where it has worked well.”

John Kilby, John D Kilby & Co

No“We have had a non-up-front model for six years and it works for us. It guarantees good cashflow and it is good for the business. An up-front sum may encourage that sales push for that big wedge.”

Julian Stevens, Harvest IFM

Yes “There has been too much focus taken from the real issues we all face – as long as the adviser is honest and up front, that is all that matters. If the client is aware of how much they are being charged and for what, it does not matter a jot how the advice is paid for.”

Bryan Rose, Bryan Rose IFA

No“I can see a strong argument for not allowing it because advisers might be swayed by the terms the provider is offering, when it might not be the best thing for the client. It is commission under a different hat.”

David Ferry, Ferry Financial

Yes “If we do not get paid up front, then we will not be able to continue doing our jobs”

Martin Gale, Martin R Gale

No“I am quite happy with the situation as it currently stands.”

Steve Lunn, Homes Counties Financial Services

No“I am dead against it as I believe it is fudging the issue on all the old problems that have played a part in leading to the mess we are in.”

Mike Shaw, Hedley Asset Management

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