CAR likely to succeed - Scottish Life

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Customer agreed remuneration (CAR) will probably succeed in establishing a sustainable model in the marketplace, according to Scottish Life.

The provider’s interim results show a growing demand from IFAs and their clients for transparent and flexible commission structures. Almost 90% of Scottish Life’s regular premium new business uses a fee-based structure, primarily the Financial Adviser’s Fee (FAF) commission option, a form of CAR. The remaining 13% of cases use the traditional initial commission basis. Jim Smith, sales director at Scottish Life, says: “The rate at which advisers have switched on to our FAF option, and worked out the best ways to explain it to their clients, has varied from individual to individual. There...

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