Advisers start slashing initial commission

Advisers have begun to reduce the initial commission they charge in favour of enhanced recurring remuneration, new Skandia analysis reveals.

A survey of 3,000 Selestia Investments Solutions platform users showed the average initial commission taken over the last six months was 1.9%, with median trail commission at 0.6%.

Skandia says the figures suggest advisers are willing to adapt their business models and move away from the traditional 3% initial and 0.5% trail commission option.

“Advisers know that changes to the regulatory landscape resulting from the Retail Distribution Review are going to impact their business models,” Skandia proposition marketing head Peter Jordan says.

“Our figures tell us that there are some advisers who are determined to get ahead of the game.”

The firm says it has recently removed the initial margin it receives via its investment solutions platform to enable advisers to adapt to the changing marketplace.

Contact:
Hysni Kaso
0207 484 9793
Hysni.Kaso@incisivemedia.com