An intermediary franchise has been set up to help business switch from commission to fee-based finan...
An intermediary franchise has been set up to help business switch from commission to fee-based financial planning.
True Financial Planning, launched last week, is targeting small and medium size intermediary firms and aims to provide them with the infrastructure and training to switch their business model.
The founders of the franchise were the directors of the intermediary firm Baxter Fensham, which switched from commission to fees during 1999-2000. At launch True Financial Planning has signed up three other intermediary firms, Slater Marchant, JRD and Provenio. The aim is to recruit 15-20 firms by the end of the year.
John Baxter, director at Baxter Fensham, said: 'Clients are getting more sceptical about the whole commission-based business model. In our experience what they are looking for is quality advice, they do not want solutions and products always being thrown at them.'
The 72% decline in the share price of Inter-Alliance announced two weeks ago, said Baxter, is proof enough that the commission-model is not working anymore.
For more information, visit www.truefp.com.
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