Final Word on Adviser Remuneration Poll…For Now

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The final poll results are in for our question about transitioning to a fee for service model for adviser remuneration.

Hundreds of advisers have voted in this poll, where four out of every five respondents voted ‘no’ to the following question:

‘Do you agree with transition to non commission-based adviser remuneration (incl hourly rate, service-based and asset-based fees)?’

This current debate stems from the consultation paper on Financial Planner Remuneration released by the FPA at the beginning of this month, and while the majority of advisers are in favour of at least having the choice of using commission as their preferred remuneration vehicle, there is equally strong opinion amongst some advisers that commission should no longer be a remuneration option.

At the end of the survey period, 82% of  advisers are saying that they effectively favour the flexibility offered by commission-based remuneration options, while 13% voted that the industry should transition to fee for service only by 2012.  The remaining numbers were undecided.

The FPA has committed to a broad consultation process with its members as well as other interested parties, with the next stage in the Associations’ agenda being the deadline for submissions in response to its consultation paper, which is set for 29th May 2009.



6 COMMENTS

  1. Both industry and advisors should not be supporting FPA- they are not in touch with advisors or reality!!

  2. The Financial Standard is publishing a two page article I have written (prior to being aware of this poll, myself) responding to the FPA’s proposals. I will also send a copy of this response to the Financial Standard Editor – who is highly supportive of broad industry discussion on this matter.

    My full paper can be read here at
    http://smartpoppies.wordpress.com/2009/05/15/response-to-the-fpa/ or http://tinyurl.com/q992cm

    Well done, RiskInfo – because we need to protect both clients and advisers from the FPA’s proposals.

    Lesley Dewar

  3. Great effort guys, a poll like this is really helpful to sort out the rumour from fact on the real industries stance on this issue. Now lets just hope the FPA listens to reason!!!

  4. The FPA is obviously not representative of its membership, but of it’s own views. Perhaps it’s time to allow an alternative organisation to represent advisers and relegate the FPA to the obscurity it deserves. It did nothing to confront Storm,Timbercorp etc, and is dead scared of the industry funds despite the weeknesses that these organisations have and could be confronted on.

  5. Build a quality business that services a client appropriately, and they, like all of our clients will have no issue with paying a fee directly from their bank account.

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