Regulation  

Two years on, client value still a challenge: IFA

Two years on, client value still a challenge: IFA

Charging clients a fee rather than receiving a commission continues to be challenging for advisers two years after the introduction of the RDR, Peter Skidmore, director of Birmingham-based Aquarius Wealth Management has said.

Mr Skidmore said: “I do not think the FCA has finished with this change, and over time I think it will push firms to demonstrate clearly that it has a structured value proposition for the client.”

The Birmingham-based adviser who made the transition to fee-based advisory services ahead of the implementation of RDR, said many advisers had simply replaced the word “commission” with the word “fee”.

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He said: “This irritated me because I do not think it is in the spirit of RDR and it only provides a method of surviving instead of thriving.”

For him, he said, reform was about providing a level of service based on what the client wanted.

“I created a process where the adviser is a guide and facilitator, but which is driven entirely by the consumer,” he said.

Adviser View

Brian Spence, managing partner at London-based Harrison Spence, said: “IFAs know the value that professional advice brings to clients and the danger of individuals making their own investment and financial decisions. Yet it is surprising how often they think that they can do the marketing piece without significant qualifications and expertise.”