Page 45 - Phonebox Magazine January 2013

• an industry that engages with consumers in a way that delivers more clarity for them on products and services
The measures being introduced are a major alteration to the way advice will be provided to the consumer in the UK but there are fears in some quarters that, due to lack of affordability, it will lead to lower earners being excluded from the advice process altogether. Time will tell if this turns out to be the case but we certainly hope not.
• remuneration arrangements that allow competitive forces to work in favour of consumers
There are also stricter requirements for advisers in order for them to be deemed ʻIndependentʼ. As a result, there is likely to be a proportion of current IFAs that, from next year on, will be known as ʻRestrictedʼ advisers.
• standards of professionalism that inspire consumer confidence and build trust
Here at Advison we welcome the above changes as an important phase in the increased professionalism of the financial services industry and the light in which advisers are viewed by the general public. Unlike many advisers, we have provided an ongoing service for our clients, including six monthly reviews, since we started eight years ago and we expect the changes introduced by the RDR to have little effect on the relationship we have with our clients, both existing and new. We will also remain Independent.
To this end, from the implementation date of 31st December 2012, wide ranging changes have been introduced. These include considerably higher levels of qualification being required for financial advisers to be authorised, the abolition of commission on advised Retail Investment Products (this is basically pensions and investments) and the requirement that there must be a service provided to the consumer when a fee is taken.
In the future, when receiving advice you will pay a fee, rather than the product provider paying commission. Furthermore, any recurring fees (as opposed to initial fees) for ongoing services can only be charged if a service is provided. Up until now, it has been quite common for 'trail commission' to be paid on an
If you would like to discuss your current financial arrangements or have questions concerning the changes, then please call us. Remember, initial meetings are free and we are happy to come to see you in the comfort of your own home. See our advert below.
Finance Matters
For a happy ending
speak to the experts about retirement planning
...in 1901 the life expectancy for a boy was 45 years and for a girl it was 49. By 2010, these figures had risen to 78 years and 82 years respectively. That is an increase of 73% and 67% in just over a century.
For every year that life expectancy increases, pensions have to fund a year more of income, putting ever greater pressure on both private and public pensions.
If you wish to review your pension arrangements or you are approaching retirement, why not contact Advison and see how we may be able to help you. Remember – initial meetings are always without cost or obligation.
Speak to the experts...
Speak to Advison
Call us now on 01908 285690
Advison specialises in Investments, Retirement Planning and Protection. We offer a return to the traditional values that only a smaller company can offer, a service we find is appreciated by the more discerning client.
I feel so much happier now that I have a clear strategy in respect of
all the investments
and pensions I have accumulated in the past. Mr D, Bristol.
brings you
Historic changes to Financial Advice sees the removal of commission
A process known as the Retail Distribution Review (RDR) has been taking place within the Financial Services sector for a number of years, having commenced as long ago as 2006. The RDR has numerous aims but a sample of these are;
investment for years without the adviser providing any service.
Did you know?
www.advison.co.uk
If you choose to proceed on a fee basis, our typical hourly fee is £150.
Advison Ltd is an appointed representative of IN Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Services Authority. Registered (England) No. 5009271
Phonebox Magazine 45