Advisers are actively looking to increase their percentage of recurring income compared to up front commission during 2009, according to the latest reseach for Skandia's Financial Planning Index.
Skandia expects this figure to grow significantly as 85% of advisers said they intend to increase the percentage of recurring income they receive over the next year.
"Recurring income becoming a more desirable income stream for advisers indicates that offering a more comprehensive ongoing service to clients is high on the agenda," says Peter Jordan, head of proposition marketing at Skandia.
He adds: "This is likely to be mainly in response to demand from clients but it has the added benefits of being in line with the way regulation is shaping the market and ultimately will create long term value in the business of the adviser."IFAonline
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Set to become part of Single Financial Guidance Body
Also plan to scrap NI on contributions
Eight-week high against US dollar
Lower cost option for advisers