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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.

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Comments

There are 13 comments at the moment, we would love to hear your opinion too.

  1. Is the £123.92 per week all the adviser firm pays to be a member of the network or is that the cost each firm pays towards the FSCS contribution ?

  2. Simon Wood-Woolley 7th October 2015 at 5:34 pm

    As a recent departure from the Intrinsic Network, additional costs are levied for other services, systems, tools and IT.

  3. A £600 a year ‘hike’ is a drop in the ocean compared with other advisers fee increases to be fair. Scandalous and shameful as the FSCS funding debacle is!!

  4. Mark Garnier, likened the cost to financial services as a “feeding frenzy” ! this analogy or reference is spot on, however its also effects the client.

    What I find most distasteful is, at the end of the day these people (FCA, FOS MAS etc etc) are just quango’s., and I need not expand on the FSCS

    These costs (be warned) are set to get worse, I really do fear the next 5 years, my estimation is, it will take this long before some-one will turn round and see this ocean has been over fished to the brink of extinction………..

    So those are in it for the long haul, buckle in for the ride to save your livelihood,

  5. Doom-mongering – the sign of professionalism.

    • Doom-mongering, indeed !

      Failing to prepare means you prepare to fail, the FSCS have been warning us publicly over the past few months if you can be bothered to read between the lines, SIPPs, tax avoidance schemes, UCIS etc etc…… these levies “will” come to pass ! and I wager they will be as big if not bigger than previous

      So if its un-professional (as you may suggest)to be mindful or fearful of pending negatives then so be it !

      Therefore by your definition burying your head in the sand, like the ostrich is the way to professionalism…………. good luck with that one !

      • Completely professional to be mindful, completely unprofessional to spend your days posting such things on a public forum. What exactly are you looking to achieve?

        • Matt, these forums give us all the opportunity to discuss and complain about the regime that has been inflicted on us which is crippling our businesses, costing our clients a fortune and failing to protect the public. If DH was posting the above on a public forum I’d agree with your point of view but MM is exactly the place for this type of stuff.

        • Matt; bit confused ? whilst you agree with my point (professionalism) your beef seems to be with me posting said opinion and how I spend my day ?
          And what am I looking to achieve….. that’s simple, change !

          If all you are looking for is to be spiteful, then you will need to be a bit more creative and get a bit more practice !

          May I suggest go work for the F.C.A

  6. I’m just very aware of people – who are not advisers, but potential clients – who read these websites, and the impression they give of advisers to the public. I wish you all the luck in the world of achieving your goal of change, by moaning on here.

  7. Compliance Thought 9th October 2015 at 12:29 pm

    Matt Amber is right. It is very easy to tap away a few lines moaning about it over lunch. If you are that bothered, get off your a*** and do somethig about it.

    Start an action group, put forward a sensible, reasoned alternative and go to government / your local MP.

    Alternativelly, waste you time venting your anger on a forum that will get you absolutley nowhere.

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