AWD Chase De Vere has overhauled its adviser bonus scheme after the firm was last month fined more than £1m by the FSA for pensions mis-selling.
Since January 1, the national IFA says it has been operating a system that will see registered individuals (RIs) rewarded for the quality of their advice rather than the number and profitability of sales.
Marketing director Martyn Laverick says the move means advisers with a falling balance sheet will still receive a bonus if they have practiced good financial advice.
"Our bonuses are now centred on quality rather than quantity," he says. "We felt it was the right thing to do."
In December, the FSA handed AWD Wealth Management a £1.12m fine for "serious failings" the regulator concluded led to pensions mis-selling.
It said as many as 800 people may have been badly advised by the firm between February 2006 and October 2007.
It remains the largest fine for pensions mis-selling levied by the FSA since it took action, to the sum of £1.9m in September 2003, against Lloyds TSB for pensions malpractice.
It was also the third-largest FSA penalty in 2008 after the regulator fined Alliance & Leicester £7m million for serious failings in the telephone sales of payment protection insurance.IFAonline
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