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Sandler could help more IFAs keep independence

Ron Sandler&#39s proposals for the future of the independent sector have been met with gratitude from IFAs who have concluded he has made it easier for advisers to remain independent.
Sandler&#39s report published this week proposes a “substantial relaxation” of the FSA&#39s Defined Payment System by removing providers from influencing how much and how IFAs are remunerated and allowing several different methods of payment.
Unlike the FSA&#39s DPS proposals, Sandler&#39s reforms will allow a sale contingent fee option removing the pressure on consumers to write a cheque as they walk in an IFAs door.
Payment options include upfront payments, hourly fees, instalments, a percentage of the initial investment similar to commission or a percentage of the funds under management like trail.
Only advisers fitting the DP model will be called an adviser, while others will be forced to choose another label such as “product distributor” although they would be allowed to continue to receive commission.
Sandler says his reforms tackle an industry in which consumers are unempowered, advisers have no incentive to act in their clients best interests and providers have too much control over remuneration.
But the FSA says Sandler&#39s proposals will not be given “anymore weight than anyone else who responded to CP121” according to spokesman Rob McIvor.
Sandler told Money Marketing: “It is a substantial relaxation from CP121 which has no sales contingent payment for advice. The new system would not demonstrate any fundamental difference from what happens today. But the provider would have no say in how much the adviser gets paid.”
Syndaxi Financial Planning principle Robert Reid says: “If you are not really advising but only promoting a product then you should not call yourself an adviser. I think Sandler has sorted out the DPS for the FSA which must be a good thing.”


Building Societies&#39 Association and dual pricing

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Product providers to offer vanilla pensions

Pickering wants product providers to stick to the three new types of pension that he proposes to introduce and not market their products outside set definitions. Warning that he wants to see the number of pensions on the market cut from around 20 to three, Pickering has indicated that providers must not attempt to say […]

Inside Edge: Ian Chimes

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Guidelines for trustees

The major UK pension bodies have come together to produce a model administration agreement that allows trustees to lay down service standards with administrators.The agreement gives trustees the ability to design their own checklist specifying performance levels and terms of maintenance. It should provide a focus for trustees setting up admin arrangements as well as […]

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EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.


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