View more on these topics

Chadborn wants remuneration rethink for protection business

New remuneration options are needed in the protection market to encourage more IFAs to advise in this area, says CBK principal Peter Chadborn.

Chadborn says big up-front fees are outdated and potentially crippling to firms if some of the money needs to be clawed back. He says moving to trail for protection is a better route but suggests the industry needs to think of a new way to remunerate advisers.

He says: “The rest of the industry in terms of wealth management and investment is about avoiding up-front commission, providing an ongoing service and getting recurring income. The financial pain of moving from indemnity to non-indemnity is too much for many IFA models to bear, so can there not be a third way?”

Bright Grey managing director Roger Edwards says there are other options such as switching from commission to a procuration fee.

Legal & General IFA sales director Martin Noone suggests the industry could offer a smaller lump sum to be paid alongside trail commission.

Noone says: “We have got no plans to change our commission structure but we support the IFA community and if there is a big enough call to change or increase the options on commission payments, we are flexible.”



News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm