Intrinsic hikes AR fees to meet ‘unprecedented’ FSCS levy

Richard_Freeman_Intrinsic

Intrinsic is to hike adviser fees from January 2016 to help it meet an “unprecedented” rise in the cost of regulation.

In a letter sent to advisers last week, the Old Mutual-owned network said its FSCS bill was £5.5m, £2.8m more than was expected.

Intrinsic says it has absorbed around half the cost of the increase, with the remainder passed on as fees to appointed representatives.

As a result, independent advisers will see a £12 a week increase, to £123.92.

Restricted advisers will pay £10.50 more a week, to £88.73.

Mortgage and protection advisers will pay an additional £9.80 per week, to £48.80.

A spokesman says: “The fixed fees advisers pay to Intrinsic are a reflection of the costs we incur as a network, including those arising from regulatory sources. This year’s unprecedented rise in the amount Intrinsic has been charged for the FSCS levy means we will have to increase fees from 1st January 2016.

“We appreciate that increases in fees are never welcome, but we have consulted widely with our Appointed Representatives since June on this subject. We believe that our approach, which will see Intrinsic share the burden of this cost increase, reinforces the degree of protection that our advisers receive by being part of a strong network.”

Earlier today, the network’s results showed it made a £1.3m loss in 2014, mainly due to boosting provisions against complaints.