Friends Life has announced how it plans to facilitate adviser charging across its corporate benefits, retirement income, Friends Provident International and protection ranges.
For corporate benefits, the insurer has developed a charging modeller tool which will allow advisers to assess the potential impact of adviser charging at scheme level. It is also developing a toolkit to help advisers with setting up auto-enrolment schemes on behalf of firms.
Friends Life will offer a range of consultancy charging options through its flexible retirement account on the corporate wrap.
Adviser charging will be facilitated on some annuities as either a percentage of the fund after any tax-free cash has been taken, or a flat fee.
Fees will continue to be facilitated on individual full Sipp drawdowns where adviser fees are paid from the Sipp bank account.
A fee facilitation service will be launched on 1 October for lifetime care products, Friends Life’s long-term care range. Illustrations will be offered on a nil commission basis with the option to add an advice charge to the premium.
Adviser charging will be facilitated on Friends Provident International investment products open to new business in the UK, including the reserve advance, succession planning bond and reserve products, for top-ups on policies previously sold in the UK. Overseas products are unaffected.
Commission will continue to be offered on individual protection business. Advisers wishing to charge for protection advice through the product will be able to show quotes where the premium is reduced in increments over time to reflect the agreed fee.
Group protection products will continue to offer commission and facilitate adviser charging.
Friends Life is reviewing the legacy products under its Heritage business and says it may add adviser charging on certain products next year depending on adviser and customer demand.
Friends Life managing director of corporate benefits Colin Williams says: “RDR is a landmark moment for the financial services industry and everyone working within it. We are fully supportive of the increased standards and transparency the reforms will bring and we are working to make it as easy as possible for advisers to make the changes required.
“We are focused on making the Friends Life proposition as simple as possible, so as to ensure a smooth transition into the post-RDR world.”
Essential IFA managing director Peter Herd says: “Providers need to be flexible in ensuring advisers can be paid in the way they want to be paid post RDR. If a provider does not offer that flexibility in facilitating adviser charging the adviser will go elsewhere.”