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.”