Burns-Anderson is encouraging its members to move to a fee-based model and has branded up-front commission as the heroin of the industry.Speaking at the network’s annual conference in St Andrew’s Bay last week, finance director Peter Coleman likened initial commission to the drug, saying it provides immediate gratification and short-term benefit but ultimately it has destructive tendencies. He said in order to achieve a better perceived sense of professionalism, the industry needs to move towards an increasingly fee-based model and drop reliance on initial commission. He said advisers need to move towards renewal commission and added that renewal payment streams of the network’s members have grown by over 20 per cent in the last three years. He said firms that adopt this model will see a threefold increase in their income. Coleman said that Burns-Anderson believes that IFAs should also view building ongoing value into their businesses as an important part of their exit strategy, saying that many will not be able to sell their business or will do so for a poor multiple of their underlying client assets if they do not. He also dismissed recent and ongoing claims from some support service companies that the network model is dead, saying that Burns-Anderson, which is almost 20 years old, is stronger and more successful than it has ever been.
The Financial Services Authority says regulation has helped consumers shop around.It also says consumers who receive key facts documents can understand the risks and features of the mortgages they take out. These are among the findings from the first stage of a review by the Financial Services Authority into the effectiveness of its mortgage regime […]
Bestinvest brokers latest results has revealed a 71 per cent increase in pre-tax profits to over 6m.The statement for the year to May 31 2006 also shows an annual increase in earnings per share to 58 per cent and a turnover increase of 59 per cent.Bestinvest chief executive John Spiers says: “This was the first […]
In the US, a great discussion revolves around the age-old debate of fees v commission. In my own firm, the ratio of fees to commission has changed substantially over the last few years to the point where some fees have no potential to lead to the sale of an insured or collective investment. As a result, we will soon need to set up a separate company for that revenue, if only to keep the VAT return simple.
Consumer portal Find has bought Defaqto’s parent, The Independent Research Group, in full
By Rob Burnett, Manager of the Neptune European Opportunities Fund In recent weeks, the bear case for European equities has become more pronounced on the back of weaker-than-expected GDP data and deflation concerns. This softening in economic momentum has led some investors to question whether the ECB is behind the curve and indeed whether it […]
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Fiducia managing director on ‘good old-fashioned’ customer service in the digital world Anthony Scott is adept in the art of communication. As an adviser and a novelist (he has written the novels ‘On Ashover Hill’ and ‘The Birthday Gift’) it is crucial for the Fiducia Group managing director to engage and build a rapport with […]
The FCA has reiterated its warnings that advisers outsourcing defined benefit transfer advice to firms with relevant qualifications cannot divorce themselves from responsibility for the eventual recommendation. While existing FCA rules require additional qualifications to advise on DB transfers, and the FCA has written to all firms who have DB transfer permissions as part of […]
The Liberal Democrats have branded the government’s decision to delay a pot follows member pension system “incompetent”. The Liberal Democrat spokesman for work and pensions Stephen Lloyd MP says the move by pensions minister Guy Opperman shows how “rudderless” the current government is on pensions policy. Last October Opperman suggested the pot follows member initiative […]