Prudential to allow clients to change adviser charges
Advisers’ clients will be able to instruct Prudential directly on charging structure post-Retail Distribution Review, the provider has revealed.
According to Prudential’s plan to implement adviser charging, clients will be able to notify the provider via a section on the application form which charges it should make after agreeing with the adviser.
Advisers and their clients will agree on charges beforehand and Prudential will implement them only once they have received instructions, the firm said.
It added that, depending on the product, the client will have the option to pay the adviser charge monthly, quarterly, biannually or annually.
Advisers will also be able to give instructions if they are specifically in relation to decreasing or stopping adviser charges.
Russell Warwick, distribution change director at Prudential, said: “The important thing for advisers is to have simple processes to maintain their cash flow post-RDR.
“Our aim has been to create an easy payment method to assist the process of adviser charging. We have the systems and capability in place to facilitate the charge, which means advisers using us will not have to collect their fees directly from their client, unless they specifically wish to do so.”