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Zurich sets out RDR adviser charging plans

Zurich building 480

Zurich has unveiled its RDR proposition which will see adviser charging facilitated through its platform and the closure of some of its off-platform products.

The insurer will facilitate adviser charging through its FNZ-powered platform on its cash Isa, stocks and shares Isa, its investment account for unwrapped assets and its retirement account for Sipp assets and drawdown.

Zurich is launching an RDR-compliant sterling investment bond to replace its existing sterling bond. The new bond and the international bond, which remains open to new business, will not support adviser charging.

Other off-platform products closing to new business at the end of the year are Zurich’s Sipp, trustee investment plan, sterling Isa and sterling investment account.

Zurich will not pay commission on top-ups where advice is given. Trail commission will continue on the original investment amount for the sterling investment bond, the Sipp and single premium sterling Isa and sterling investment account. But Zurich says if there is or has been a regular payment into the Isa or SIA, any advised increase will lead to all trail commission stopping, as it cannot allocate trail payments between existing and increased payments.

Zurich will pay commission on new plans beyond 31 December where there is an illustration and application dated before this date, and where the application and monies are received by 15 January.

For the Zurich Sipp, where the business involves a transfer from the ceding scheme, there will be an extension until 29 March. Online applications will close at midnight on 30 December.

Facts & Figures Financial Planners managing director Simon Webster says: “If providers do not have a sensible RDR proposition in place, advisers will just go to a provider that does. It will all come down to ease of use and strength of service.”


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