It is recognised that Hargreaves Lansdown is largely financed by trail commission so Peter Hargreaves justifiably preaches his own case (Money Marketing, April 8). But has he yet achieved success in rewarding employees on the basis of client contact, not business done?
I am not aware that his staff are paid to ring up clients to pass the time of day. How often do they make recommendations to clients based on individual circumstances?
When it comes to supplying most insurance company products, people need to have them sold to them. If it is the right product at the right price, it sticks. The client is content and will run with the policy.
There is no reason why the IFA should not be paid at or shortly after the point of delivery. Whether this is by commission or a fee is entirely a matter of prior agreement. I fail to see how spreading this out over the life of the product makes the transaction any more valid.
I have a very small client base with whom I maintain a personal contact on a frequency suited to each case. If I do not, normal market competition will cost me a client. I think most of us are already aware of the need to service clients and reward by way of ongoing management fees will make not a ha'port of difference.
Robin Smith Robin Smith Independent Financial Adviser, Dundry, Bristol