The pensions specialist arm of Royal London Group introduced CAR in 2003 and its latest figures show that 93 per cent of its regular premium individual business is now being written through a fee-based structure.
This compares with 87 per cent last year and 50 per cent in May 2004.
Royal London intermediary division chief executive John Deane says: “We believe that the use of CAR models, such as our financial adviser’s fee, offer a fairer, more transparent and more sustainable solution than traditional initial commission models.
He adds: “Some people have suggested that the Retail Distribution Review interim report was lukewarm on CAR but we totally disagree.
“The FSA clearly states in the interim report that product providers have no role in determining remuneration.”