Widespread adoption of the factory-gate pricing model by adviser firms is "probable" following the conclusion of the Retail Distribution Review, says Winterthur.
The life provider says while the remuneration method raises some eyebrows across the industry, IFAs shouldn’t be concerned about its effects on their businesses. Winterthur offers advisers a version of factory-gate - its Flexible Adviser Remuneration (FAR) – which it says has been welcomed by some. Factory-gate pricing professes to improve transparency between the adviser and consumer as any advice charges are explicitly agreed between them. But, again, the concept seems to stand against commission, suggesting itself immune to provider bias. It is not overwhelmingly popular. But Dav...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
