Advisers support return to commission
Advisers are showing support for a relaxation in the regulations around commission, according to a survey carried out by adviser management software company Intelliflo.
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Asked for their views on the speculation that the Financial Advice Market Review may lead to commission being reintroduced for investment products, only around a quarter (23%) said they thought it was a bad idea and would be a backward step for the image of advisers.
More than a third (37%) said they thought it may be a good idea but it would depend on which products it relates to and how it has to be implemented. Almost one in 10 (8%) said they thought it was a very good idea.
Only around a quarter (23%) said they were unconvinced the reintroduction of commission would be in the best interests of consumers.
Nick Eatock, Intelliflo’s Executive Chairman, commented:
“Advisers who traditionally helped people with small amounts to save via commission-based products now find they can’t service this type of client. The fee-based model doesn’t work for them because there is resistance from clients to writing out cheques for advice upfront. Many advisers believe this is creating a barrier to helping people invest for the future and is fuelling the growing advice gap.”
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