RDR: Factory-gate way forward for remuneration

The Impact of Incentives Working Group, chaired by Mike Yardley, chief executive of Royal London, recommends a system it calls Customer Agreed Remuneration (CAR). Under CAR, the costs of intermediary services are separated from the costs of the product. According to the Group’s findings, this would allow customers to see, and where possible to agree, the amount of remuneration and the additional product charges paid by the customer to finance that remuneration. “In our minds it’s not so much about fees versus commission but about making things clearer for the customer,” Yardley says. ...