In his letter, Robert Reid questions the assumptions that I made and there is an implied criticism that perhaps the statistics I quoted are unsubstantiated.
There is more than a touch of irony in that remark. It was because I questioned his assertion that banning commission offset would result in less than 2 per cent of advisers being able to call themselves independent that I quoted verifiable statistics to show that there were already more than that number not taking commission but being paid by their clients.
Robert appears not to be familiar with “pure” wrap services. Advisers who choose these platforms are remun-erated by their clients on whatever basis the two parties agree. In our experience, this includes initial payments for arranging investments as well as receiving fees based on funds under management.
The proposals outlined in the RDR are far reaching and more radical than anything we have seen since the Financial Services Act 1986. But IFAs are adaptable, as they have proved many times in the past. I have no way of knowing how many will end up as professional financial planners but I will have a bet that it will be well above the 2 per cent that Robert and David Elms fear.
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