An IFA's key consideration if switching to fees will be whether the existing client list provides cost-efficiency and strong profit potential, rather than complexities of actually making the move, says information produced by 1st Software.
As well as explaining the difference between fee-charging and fee-based advisers, 1st Software points out that classification of client lists is likely to be the most important factor of any business restructuring, as different types of clients might be better served – from the point of view of the adviser – in different ways. In particular, intermediaries will have to make the difficult decision to 'clean out' of those clients who are likely to lose a firm money or will be less cost-effective than the bulk of business potential. "Decisions have to be made about which clients to retain a...
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