Hargreaves' move to fees aggrieves IFAs facing pay cut

IFAs being re-contracted into Hargreaves Lansdown's Financial Practitioners business on an employee basis will see their earnings cut by an average of 40% according to comments from affected advisers received by IFAonline. HL says the switch is needed in order to implement a new business model in response to CP166, and that advisers will be incentivised by bonuses on top of salary. Because the level of incentives will be based on additional sales that cannot be known beforehand, it implies the level of earnings reduction cannot be known. Danny Cox, HL's head of individu...