Openwork predicts shift to commission-paying protection

The advent of the Retail Distribution Review could push advisers into areas where they can still earn commission, Openwork’s proposition and marketing director Philip Martin has predicted.

In an interview with FTAdviser, to be published later today, Mr Martin said that, he expects more advisers will broaden their scope to include areas that are excluded from the RDR such as mortgages and, particularly, protection products, on which commission can still be earned.

Mr Martin said that the network serves about 2,200 advisers who are evenly spread between two broad areas, investments and pensions, and mortgages and protection.

He said: “We will have some advisers who may decide to also start speaking to clients about mortgage and protection.

“If you are a business that is directly affected by the RDR you might also want to widen your offering out to start advising on those areas that aren’t.”

Mr Martin also said that he believes that “more attractive” pricing offered by providers to restricted advisers within networks will prompt a movement away from the more stringent ‘independent’ title.

He said: “If I’m a product provider and I have a business like Openwork and on the other side I have an independent which has to fight for space with other providers, from a provider’s perspective they will price the first better because they can see the business flow coming through.”