Financial advisory group Honister Capital is considering moving away from its current pricing strategy whereby it charges advisers according to their level of income, saying it is "not in the spirit" of RDR.
The group, which acquired the advisory and D2C businesses of The Money Portal in 2009, believes a variable retention rate scaled according to productivity may not send the right message to its client advisers.
Strategy and business development director Alan Easter says the company is exploring ways to reward advisers according to the ‘quality' of the business written as well as the volume.
Currently, Honister effectively offers a discount for its services on income earned over pre-determined thresholds. The more an adviser earns, the more, percentage-wise, the adviser retains.
"By raising the retention thresholds, we are effectively telling advisers: ‘we want you to write more business'", Easter says. "It does not necessarily say: ‘we want you to write better business'."
"We do not think it is in the spirit of what this profession is trying to achieve through the RDR.
"At the moment we are looking at ways, through our pricing structure, in which we can support those people who are fully embracing the regulatory direction.
"The quality is not necessarily with who writes the most business. We are exploring methods of getting the balance right between those people who contribute the most and those who do it the best way."
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