Advisers ditching initial commission for fees

clock

Advisers are moving away from initial commission towards fees, Skandia sales over the last two years suggest.

The firm says the proportion of intermediaries selecting the fund-based fee option on its capital and income bond product has doubled from 22% in 2005 to 44% last year. Meanwhile, the average level of initial commission selected by advisers on the product fell from 5.4% in 2005 to 4.5% in 2007. Skandia research, based on responses from more than 500 advisers, supports this trend away from initial commission. Only 43% expect income from initial commission by 2010, with 37% from trail and 18% from fees. The provider says this represents a huge difference from the current market as suggeste...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Andrew Goodwin: It's time for advisers to think differently about innovation

Andrew Goodwin: It's time for advisers to think differently about innovation

'Ours is still a profession that rightly places enormous emphasis on the human touch, relationships and trust'

Andrew Goodwin
clock 04 July 2025 • 4 min read
Altus' Holford urges advisers to reframe concept of advice gap

Altus' Holford urges advisers to reframe concept of advice gap

Traditional models of value, service and delivery are being challenged

Sahar Nazir
clock 04 July 2025 • 2 min read
PA Asks: Do you keep in touch with clients when on holiday?

PA Asks: Do you keep in touch with clients when on holiday?

Plus, targeted support worries and BDMs

Professional Adviser
clock 04 July 2025 • 1 min read