We're trialing a similar method to this

Having read the draft proposals for adviser charging on regular premium pension and inevstment business, we carried this offer to terms for protection which we having been issuing to clients in draft since November explaining we intend working with this model from April. The text is lifted from the FSAs own RDR paper including an example of what a Keyfacts about our costs and services might look like post RDR. Doing this we came to the conclusion it made the Keyfacts anything BUT Keyfacts as it was far too lengthy and hence we carried it over in to Our Client Agreement and terms of Busines.... We would have liked (and did ask) the FSA for their constructive opinion, but they refused to read it on the basis we had mentioned in our covering email that we were trying to make sure our clients were aware that a longstop DOES apply to some of our services (I.e. non regulated work) and even where the F-pack refuses to recognise any 15 year Longstop, even their own rule book says that going past the 6, 3 and 15 year timebars requires EVIDENCE of exceptional circumstances. Due to this they refused to comment on any part of the document. The ever helpful FSA willing to engage and be constructive my arse.....

Posted by: Phil Castle

To Complex

Surely this is too complex for Mr & Mrs Joe average. I believe if it aint broke why fix it. Individual IFA's should not give any signs of encouragement to the FSA because they will see this and believe that this is what everyone wants. If it works for him fine but he should not try and enforce his view on the rest of the IFA population. Also what right has he got to say whether or not other IFA Firms are treating their customers fairly. The arrogance of the man is beyond belief.

Posted by: Paul

Not that complex!

Pretty simple I think. Clients either pay factory gate prices for protection and an upfront free, or they pay the standard retail premium. Brian

Posted by: Brian Hill

Why?

Is it TCF in the current financial climate that a person taking out a protection policy, being made redundant and then lapsing the policy as they cant pay would have to continue having to pay the IFA when under the traditional (and best) scheme his payments would just stop. no it isnt.... frankly Im getting fed up reading the pontifications of a few IFA's whose business model means they deal with the chosen few who can willingly pay upfront fees.... The vast majority of people who buy protection are not ready or willing to pay a fee for advice...

Posted by: Rob

Well said

Well said Rob - I couldn't agree more

Posted by: Bob Stark

Wording can sometime slet us down and change perception for the worst

As you may have gathered from my first post, I think Brian may be right where he says "fee-based protection advice, dubbed "unworkable" by some, can be a success," I do however think it unfortunate he went on to say "and argues advisers who say otherwise are not necessarily treating their customers fairly" Adviser charging on protection doesn't need to be mcuh different to commission on protection. We've always reserved the right in our Client Agreement to reclaim commission from a client if a plan is lapsed, but have never enforced it as those who can't pay, there is no point, those who can pay, usually pay without us asking and those who might refuse to pay, we don't want as clients going forward.... I am willing to try some of the things which have come up in the RDR, but what I DO object to is the FSA (or anyone other than my clients or my PI insurer) telling me what to do, rather than selling me the idea of doing something a differrent way or at least trying it. I hope Brian was trying to "sell" you the idea of trying it, unfortunately, if he didn't write the whole text of the article, it could simply be unfortunate wording by the article writer. OH and by the way, I deal with clients from the former mininh towns in the area of Deal in Kent, Dover (illegal immigration centre of the UK) and Thanet (whcih includes Margate with the largest number of boarded up shops in the country according to statistics last week) and have a very broad client base.

Posted by: Phil Castle