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LIA and IFP deal in doubt over fees

A deal between the LIA and the Institute of Financial Plan ning may be in jeopardy bec ause of differences bet ween the bodies over char ging clients fees.

The deal, which would have seen LIA members able to qualify as certified financial planners, could collapse because the IFP stipulates that all members must provide cli ents with the option of paying fees for advice. The exam to qualify as a CFP is offered exclusively by the IFP.

But the LIA says there will be financial planners who continue to work for commission and it is not necessary to charge fees to become a planner.

By signing a deal with the LIA that does not stipulate this requirement, industry sour ces believe the IFP appears to have abandoned its long-standing principle. While stressing the IFP does not compel its members to charge fees, chief executive Nick Cann says that, to survive in today&#39s market, financial planners must do so.

Cann says financial planning involves more than simply selling products, so advisers must charge fees if they are to make a living. He says: “If you are going to take certified financial planning seriously, the only way to afford it is to charge the client fees.”

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Pinpoint 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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