The outcome of the Retail Distribution Review (RDR) should not matter as advisers must change their business models to succeed anyway, according to transition planner FP Advance.
Brett Davidson, chief executive of FP Advance, says IFAs will have to shift from a solely commission-based model to include fees to create sale value. Speaking today at a Scottish Widows RDR roadshow, he says charging fees for advice would help advisers plan their business better as they could predict their monthly income and build a renewable income stream someone will want to buy into in the future. He calls the financial advice sector a “great way to get rich slow”. He says: “Advisers have been brainwashed by history. Advisers have been told ‘you’ve only got value when you’re selling s...
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