IFAs still counting on commission - Skandia

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Most UK financial advisers remain dependant on initial commission despite a marked shift toward a "new model" of holistic financial planning, research suggests.

According to the latest Financial Planning Index from Skandia, most advisers (61%) have less than 40% recurring income, suggesting they are mostly remunerated from initial commission. Of those, 29% receive less than 20% of their revenue from recurring while 32% receive between 21% and 40%. The results are broadly in line with an online Skandia survey of 500 advisers in August last year, which suggested 59% of remuneration comes from initial commission, with 26% from trail commission and 12% from fees. However, Skandia says the 39% of respondents who have achieved more than 40% recurri...

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