View more on these topics

Time is needed to make fee move

JP Morgan Asset Management has raised concerns that IFAs may not be given the time and regulatory support to move to the fee-based model favoured by the retail distribution review.

In its IFA survey, Surviving the storm, JPMAM says advisers need to be give sufficient time to make the transition and help should be made available to reshape their business models.

The report says: “Our main concern is that IFAs are given realistic timescales, and sufficient support by manufacturers and the regulator, to make this transition.”

However, BestInvest head of communications Justin Modray believes that the switch should be relatively seamless if advisers have strong systems in place.

He says: “I would disagree with the conclusions of the survey purely on the basis that if a house has its compliance in order, then the transition should be fairly smooth. The fact is that some commission-based advisers do not have robust compliance.”

JPMAM says that while it expects higher end professional financial planners to move to a fee-based model, the proposed general financial planner segment will opt for a hybrid business that operates on both fees and commission.

The company claims that there is no definitive answer to the fees versus commission debate and that remuneration should be based solely on the type of advice given.

JPMAM believes that for adviser firms to marry the principles of treating customers fairly with generating sufficient income to run their business, advisers must ensure clients understand what they are paying for and why. It adds that it believes advisers should also look at new and emerging payment structures.

The report says: “The options available to advisers and clients could even widen to include performance-based or assets-under-advice-based fees as well. As the initial retail distribution review paper has suggested, the bottom line is that it must be the client who chooses what is appropriate for their circumstances.”


Annuity warning for Resolution investors

Hargreaves Lansdown head of pensions research Tom McPhail says Resolution’s pension policyholders could end up with a poor deal on annuities if the life company’s merger with Friends Provident goes through.One of the proposals of the £8.4bn merger between Resolution and Friends is that Resolution pension investors would be offered Friends Provident annuities but McPhail […]

BBA’s Angela Knight says FSCS “olive branch” is not enough

British Bankers’ Association chief executive Angela Knight has hit out at the FSA over its latest Financial Services Compensation Scheme reform announcement claiming the regulator has failed to address all her concerns.The FSA has changed some of its proposals to radically reform the FSCS by dropping plans for wholesale firms to contribute in a general […]

New director of education at the IFP

The Institute of Financial Planning has announced the appointment of Lucy Courteney to the position of director of education.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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