View more on these topics

Openwork to cut adviser fees by 25%

Philip Martin Openwork 480
Martin: This is not about being loss-leading or encouraging advisers to join us because we are cheaper.

Openwork is reducing the proportion of income it retains from member firms on investment and pension business written on the two platforms it uses by an average of 25 per cent.

Openwork advisers are currently being trained on the network’s two platform offerings, Zurich’s retail platform, which launches later this year, and a white-labelled platform from Investment Funds Direct Limited. The charging structure will be introduced in January but will not apply to 2Plan Wealth advisers, which Openwork acquired in July 2011.

The network takes a percentage of income agreed with each adviser firm based on the level of business they write. The level of income from the adviser charge retained by Openwork will drop by 25 per cent on average. This will broadly equate to 15 per cent being retained rather than 20 per cent.

Openwork proposition and marketing director Philip Martin says the network is able to reduce charges due to efficiencies created by the platform deals and its restricted investment propostion.

He says: “This is not about being loss-leading or encouraging advisers to join us because we are cheaper. We are running the business to reflect a sustainable medium-term position where our income is diversified away from purely what the advisers earn.”

Clearwater Financial Planning managing director Duncan Carter says: “I think this is part of a play by Openwork to try to pick up more members. I think we will start to see a land grab among other networks too.”

Openwork is also rolling out a transition programme to help advisers define their RDR charging proposition. Openwork says members can set their own level of charges but this is capped at initial fees not exceeding 5 per cent and ongoing advice fees not exceeding 1 per cent.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com