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Service offering switch to fees

The Insurance Marketing Department is offering to help IFAs to switch their business from commission to fees.

The company says IFAs will need to make the move as a result of the 1 per cent maximum charge under stakeholder which will slash IFA commission.

It says the service will cost no more than £200 a month and will let IFAs determine a fee basis and make the transition for either part or all their business.

The service will include a review of the IFA&#39s current structure, suggestions on the type of fee structure and design and drafting of communication materials.

IMD says the service will mainly be available through the internet but personal meetings can be arranged.

Director Stephen Phillips says: “Every business needs to make a profit in order to survive and be able to continue offering its services. But the Government appears to be determined to make it as difficult as possible for IFAs.

“Decision trees will never be a substitute for advice but stakeholder charges will make it virtually impossible to for IFAs to advise on the important area of retirement planning. The good news is there is plenty of scope for IFAs to identify new ways of generating income through careful targeting of new prospects and existing clients.”

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