Friends Life unveils RDR plans

Friends Life has revealed 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 modelling 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 October 1 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 that are open to new business in the UK 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 demand.

Friends Life managing director of corporate benefits Colin Williams says: “We are focused on making the Friends Life proposition as simple as possible.”

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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com