DBS has increased members' charges, blaming the increased cost of regulation post-N2.
Under the new pricing structure, members with turn-overs below £80,000 a year will see DBS's commission share rise from 12.5 per cent to 15 per cent and they will pay a new “investment adviser” fee of £100 a month per RI.
DBS says the wholesale price restructuring has been precipitated by the increased cost of compliance caused by N2.
In streamlining its pricing structure, DBS is abolishing its four member categories – classic, enterprise, select and corporate – and replacing them with a sliding commission share scale varying from 15 per cent for practices with turnover up to £80,000 a year to 4 per cent for fees over £350,000 a year.
DBS' current industry ret-ention charge of £200 per firm a month and £88 per RI a month, which covers professional indemnity cover as well as membership of LIA, Aifa and IFAP, will remain.
G60, K10 and K20 qualified pension specialists will also pay a new £250 quarterly licence fee to cover N2 costs because non-qualifying members are barred from carrying out complex pension business.
DBS says the new regime cuts out charges for direct sup-ervision of newly qualified registered individuals and non-attendance at regional meetings.
Managing director Alan Taylor says: “This is the bigg-est regulatory shake-up since the 1986 Financial Services Act. IFAs are facing higher costs, reflecting investment in imp-rovements to business processes and procedures to meet the new regulatory regime.”