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Hudson wants to see advisers working as collectives

Paying commission encour-ages nomadic adviser behaviour and hinders business sustainability, says Tenet chief executive Simon Hudson.

He told a Money Marketing RDR round table that sustainable business models are only possible if advisers build regular income streams based onhighly qualified teams of specialist or generalist advisers under a firm’s umbrella status.

Hudson said client relationships should be with the firm, not the adviser, and wants to see advisers working as collectives.

He said: “You will not get sustainable models while you have commission-orientated structures because you encourage nomadic tendencies. What we need is a sustainable environment, with a career path and regular income streams, and you need clients to relate more to the firm than the adviser.”

Bankhall chief executive Peter Mann said those in charge of adviser firms will see the benefits of moving to a passive income stream but advisers working for them may feel no loyalty.

Hudson would like to see advisers specialise or generalise, with clients forging a relationship with the firm.

He said: “Big distributors have been able to force the hand of providers to pay them more money to attract the same people but what do they care? It is the same advisory group going round in circles, it does not matter what firm they are in, so there is no loyalty at provider end or adviser end. You have got principals trying to build sustainable businesses with two forces working against it.”


Ipswich BS signs equity release deal with Key Retirement Solutions

Ipswich Building Society has signed a deal with Key Retirement Solutions which will see the lender introduce its equity release business to the specialist intermediary.Chief executive Paul Winter adds: “At Ipswich Building Society our primary aim for our customers is to make available leading products and services. The missing element from the range of services […]

Advice rule urged over wrap shares

Skandia says the FSA should consider bringing in a best advice requirement for wrap platform providers that attract advisers by offering share incentives.Head of platform marketing Peter Jordan believes that incentives offered by independent platform providers can lead to a conflict of interest in the advisory process and interfere with an adv-iser’s ability to conduct […]

Trident brings multi-manaber to pubs

RAM Capital Partners is looking to raise up to £20m to invest in an enterprise investment scheme fund, which comprises a multi-manager portfolio of freehold and long leasehold pubs.

Skandia profits rise 29%

Skandia UK and Offshore has announced net client cash flows of £3.9bn for 2007 and an increase in profit of 29 per cent to £173m. It says its strategy of designing products and financial solutions solely for distribution via financial advisers is key to this success.Skandia UK’s gross sales during 2007 were £8.6bn with funds […]


School fees planning

Jeremy Pearson is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. Many parents value the standard of education offered by […]


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