The impending switch to fee-charging is now the greatest concern to advisers as they approach RDR. Adviser support group Tenet says it has edged ahead of qualifications as the biggest concern but that it need not be the stumbling block many are anticipating.
Tenet reports that, following a number of dedicated workshops on fee charging, advisers initially expressed concern, but this tended to dissipate once various fee mechanisms were discussed. These include invoicing on a time-costed basis, charging a retainer or proportion of funds under management and cash accounts when utilising a Wrap. However, a fixed fee or percentage of the investment agreed with the client and deducted through a product/s is likely to be a common mechanism.
Tenet believes that the change will not be of the ‘seismic proportions’ being widely predicted and the group is looking to reassure IFAs that the process can be achieved quite seamlessly, using adviser testimonials to provide encouragement and evidence.
Keith Richards, Tenet Group’s distribution and development director, said: “Whether advisers agree with the changes or not
