Firms warned as owners enforce retention rates

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Firms are running the risk of alienating their adviser forces as they prepare to impose existing retention rates on plunging earnings.

Hordes of advisers with national and network propositions, as well as those with directly authorised firms, are dropping to lower earnings bands as the recession continues to stifle the sector. In most cases, the lower the earnings band, the higher the percentage retained by the parent company or principal. Firms have told Professional Adviser they have either completed a review of their retention rates, or charges, in the last few weeks or will do so in the near future. Most will leave them unchanged. According to one anonymous adviser, existing rates at his national IFA mean an indi...

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