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Fees based on assets means win-win-win, says Hargreaves’ advice arm

Following the raging debate over fees versus commission accelerating in light of tomorrow’s dicussion paper on the RDR, Hargreaves Lansdown says its proof has been in the pudding since it converted in 2003.

Hargreaves Lansdown chartered financial planner Danny Cox says: “Back in March 2003 Hargreaves Lansdown’s advisory division, Financial Practitioners, hit the MM headlines when we converted to a predominantly assets under management fee model. I’m not claiming that we were the first to do this – there were other firms before us. However we were amongst the first national firm to convert.

“What we have experienced is that this model works for everyone – the client, the adviser and the firm. The key to this is that clients want to be looked after year on year. This is at the heart of TCF. Remunerating the adviser to service their clients every year through ongoing quality income encourages the right behaviors and long term relationships with not just the client but the adviser also.

“Long term income streams equal stable and healthy businesses. In 2003 we had 20 advisers. We have now grown to 70 planners across the UK, 29 of which are chartered financial planners.”


Trade bodies warn Cap Ad changes may be swift

Aifa and leading IFAs have warned that next Thursday’s publication of the Capital Adequacy discussion paper, part of the Retail Distribution Review, will have more of an impact on advisers than this week’s paper.Industry commentators believe that the FSA’s decision to publish a separate capital adequacy paper, splitting it from the main Review paper published […]

Standard says it is safe on commission disclosure

Standard Life believes it will not be in the firing line as a result of the Wilson v Hurstanger case because the company already fully discloses commission payments to its clients.However, it warns that product providers which have not been as thorough should brace themselves.Association of British Insurers protection committee chairman Nick Kirwan predicted in […]

IFP bids for role in policing professional advisers

The Institute of Financial Planning says it is the best body to police industry professionalism following proposals in the retail distribution review for a professional financial advice channel.Chief executive Nick Cann says: “The IFP is the only organisation which can develop financial planning as a profession and it is already structured to deliver the outcome […]

IHT planning boosts offshore sector

The offshore bond market grew by almost 50 per cent to £7.4bn last year as more investors went offshore as part of inheritance tax planning strategies, says Defaqto.The increase came on the back of a 60 per cent rise in 2005, despite uncertainty over estate planning and trust legislation.A report from Defaqto says continued outward […]


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