View more on these topics

Mike Kellard warns against RDR making commission “impossible”

AXA & Winterthur Wealth Management CEO Mike Kellard expressed concerns that the RDR could make commission impossible in a speech at the Westminster & City conference today.

Kellard urged the FSA not to make the RDR a debate about fees versus commission, but one around providing clarity and building consumer trust.

He said proposals that offer transparent commission should be employed for consumer groups, generally in the middle and upper ends of the market, and it should be an option at the lower end.

Kellard also said that consumer agreed remuneration provides a way of improving transparency and building consumer trust.

He added that there should only be two main categories of advisers – qualified, including general and professional, and unqualified.

Kellard said: “While not ignoring many of the good proposals that feature in the 900 plus responses to the FSA’s discussion paper, the RDR’s prime aim must be to simply close the gap in trust and improve the business model so consumers understand and value what they are getting.”

Recommended

Smooth running of CAR means articulating added value

Julian Stevens has invited advisers to provide their views on customer-agreed remuneration following the poor experience he had with a prospective client who wanted to renegotiate his “fee”. Julian’s letter actually tells us very little about CAR but an awful lot about the need to articulate value rather than price to a client. We have […]

Like it or lump it

I have an executive pension plan with a fund value of £100,000 and a tax-free cash limit of £35,000. I gather that the new pension rules do not allow me to transfer this fund without reducing my tax-free cash limit to 25 per cent of the fund. Is that correct?

Row breaks over Kilminster deal

Minority shareholders have attacked Kilminster Financial Management for agreeing a deal to transfer most of its advisers to Alpha to Omega, saying it does not represent good value for the company or its shareholders.The majority of KFM’s 23 advisers will move to A2O, with the firm thought to be getting £4,000 per adviser, with a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment