Ignoring CAR is driving out consumers - Skandia

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More people would use an IFA if all commission charges were declared upfront as standard, research by Skandia suggests.

However, a small chunk of respondents to the study admitted models such as CAR would make them less likely to see a financial adviser. The firm says the results of the study prove Customer Agreed Remuneration (CAR), as suggested in the Retail Distribution Review (RDR), is possibly the healhtiest way forward for the industry. The remuneration model calls for advisers to make clear how much their advice costs at the outset. Skandia says the results suggest CAR “could widen the appeal of independent financial advice to a larger section of society”. Of the 1,000 people questioned, 22% s...

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