Standard Life goes live with RDR adviser charging
Provider says implementation prior to deadline will help advisers make changes needed to avoid “teething problems”.
Standard Life has gone live with adviser charging on new business into its key post-Retail Distribution Review product suite, meaning that all new business on the Standard Life Wrap and FundZone platforms will be transacted on an adviser charging basis.
Adviser charging will also be available on Standard Life active money self-invested personal pensions and personal pension, with an option to continue with commission-based transactions until the end of the year, where this is agreed with the consumer. Standard Life Retail International Bond and annuities will accept adviser charging from early December.
Quotations for workplace pension schemes starting in 2013 on a consultancy charging basis are also available from today, along with a consultancy charging modeller tool and template client agreement.
Graeme Bold, director for UK retail RDR at Standard Life, said: “We were early in communicating our plans to our adviser partners and have been working hard to support their transition to adviser charging.
“We’re implementing RDR requirements before the end-of-year deadline to help advisers make the operational changes needed to avoid any last minute teething problems which could leave them closed to new business at the start of the new year - typically a busy time for them.
“From speaking to many advisers around the country we know that getting ready early has required additional effort in the short-term. But we believe that effort will now start to pay back as we all prepare for success into next year.”
According to Standard Life, the challenge that advisers face post-RDR will be minimising disruption to their business to allow them to continue to provide a high level of service to clients while maintaining cashflow when their income stream moves away from commission. The challenge for the industry, it said, will be stimulating the demand for financial advice.
Mr Bold said: “Advisers have already rolled up their sleeves and started the hard work of re-shaping their businesses to capitalise on this opportunity, but this work has only just begun and more change may well be on the way.
“Fundamentally client time, service and relationships will be the currency of the successful adviser – and providers will be measured on how they support this.”