Shrinking commission levels a threat to IFAs

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Falling commission levels on pension products represents the greatest strain on the survival of financial adviser businesses, new research indicates.

A survey from pension specialist, Scottish Life, questioning 781 IFAs, finds 60% of advisers believe the spiralling trend of commission rates is proving a major threat to their business. Trailing far behind, 15% of respondents believe bancassurers and direct sales forces to be a great threat, while 8% point to the introduction of the menu as a potential enemy to their livelihood. Moreover, close to three quarters of respondents don’t believe moving the cap on Stakeholder style products to 1.5% would make such products any more viable. Head of communications at Scottish Life , Alasdai...

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