AWD Chase de Vere has reported a positive response to the rollout of a pilot of Customer Agreed Remuneration (CAR.)
The charging structure offers a choice of advice-based fee, commission through product charges or a combination of both. This allows customers to match their payment terms according to their financial needs and circumstances, in advance of advice being given, the group says.
Following the Retail Distribution Review, many advisers have to rethink their approach to charges and AWD Chase de Vere is taking steps to ensure it meets TCF guidelines, says the company.
AWD Chase de Vere will follow up this initial pilot with another in October and intends to share the results with the FSA before fully implementing its new remuneration structure.
Martyn Laverick, marketing director at AWD Chase de Vere, says: “In line with the FSA’s requirement for greater transparency and treating customers fairly, our client agreement documents are designed to help the customer decide which remuneration package suits their needs and pocket best.”
He believes this is particularly invaluable in the present market when investors have to be prudent with their investment choices.
“We have taken the bull by the horns in implementing Customer Agreed Remuneration and believe that giving customers a choice in how they pay for advice is something the industry needs to forge ahead with.”IFAonline
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