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PFS concerned for RDR business profitability

Personal Finance Society chief executive Fay Goddard has warned some adviser firms have not fully grasped the impact of adviser charging on profitability.

Speaking at a Perspective Financial Group roundtable, Goddard said advisers have focused on getting qualified but the abolition of commission and moving to adviser charging is now a more fundamental change.

She said: “My biggest concern is, is it profitable? I am still not convinced advisers have addressed the whole issue of the value chain. Even fee-based advisers up until now have used commission offset but this is a very different proposition from the adviser charging approach.”

Goddard said she is hearing talk of commission going from 5 per cent up front to adviser charging of 2 per cent.

Goddard added: “What is that going to do to profitability? It is going to be a bumpy ride.”

Vanguard head of sales Neil Cowell said: “The acid test will be whether there is an explicit exchange of value between client and adviser and for those firms that are able to articulate that exchange of value that will be a real differentiator.

“Asking ‘How much will I charge in the new world?’ is coming at it from the wrong angle. The question should be, ‘What will I charge for?’”


Zurich chief Gary Shaughnessy: Time for protection tax breaks

Zurich chief executive for UK life Gary Shaughnessy wants the Government to investigate introducing tax breaks for protection to encourage people to take responsibility for their financial security. In his first interview since joining the provider from Fidelity in June, Shaughnessy says policymakers should consider extending the tax incentives offered to pension and Isa savers […]

Canaccord Financial to acquire wealth management business of Eden Financial

Canaccord Financial is to acquire the wealth management arm of Eden Financial for £12.8m. The deal will see Canaccord expand the assets of its UK wealth management operation, Collins Stewart Wealth Management, to £9bn. The deal is subject to FSA approval. Eden Financial is a private client investment management business with £835m of assets under […]

Advisers welcome Tenet run-off cover

Advisers have applauded Tenet’s move to offer permanent run-off professional indemnity insurance for retiring network members, saying it offers peace of mind in the absense of a longstop. The firm announced the deal last week. The cover, which will be provided by Tenet’s Guernsey-based subsidiary Paragon Insurance, is aimed at advisers who are planning to […]


Concerns raised over provider G-day comms

Experts say providers are failing to communicate with advisers about an EU ruling which will force them to offer gender-neutral rates on insurance products from 21 December. In March 2011, the European Court of Justice ruled gender pricing for insurance products will be banned. The decision will affect the way insurers price annuities, life insurance, […]


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