Factoring ban 'toughest' problem for IFAs post RDR

At an Association of British Insurers' (ABI) conference in London, speakers agreed that factoring - where providers pay upfront fees to advisers and deduct them from the product over time - was unlikely to be viable from the end of 2012. Section 4.13 of the RDR feedback statement says: "Product providers may, if they wish, offer facilities for customers to have their adviser firm's charges deducted from their investments, but from the end of 2012 providers would not be able to offer to finance advances to advisers from their own funds." This would mean adviser firms not charging an up-f...