Providers agree high-level adviser charging principles
23.05.12
Five providers have agreed a set of high-level principles they are likely to adopt to facilitate adviser charging under the RDR.
A joint project involving Aegon, Friends Life, Legal & General, Prudential, and Scottish Life has produced a report outlining the common approach to adviser charging the providers will take after December 31, 2012.
It addresses the issue of what happens to adviser charging payments where the client wishes to cancel, and what happens in the event of changes at an adviser firm.
The document has been compiled with input from Sesame Bankhall Group and was organised by Deloitte.
It sets out that any adviser charging agreement, or consultancy charging agreement for group pensions, will be between the client and the adviser firm, rather than the individual adviser.
The report says adviser firms should make it clear in their charging agreements what happens to adviser charges where a client wishes to cancel.
It says the right to cancel and how adviser charging refunds should be calculated should be set out in pre-sales literatures such as Key Features documents.
Source: Money Marketing