Provider-facilitated charging will 'fall horribly on its face'

Carmen Reichman
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The practice of product providers facilitating the payment of adviser charges to IFAs is likely to "fall horribly on its face", just as it did in Australia a decade ago, according to a business consultant.

Chris Davies, founder of Engage Insight, said he did not believe adviser charging facilitation (ACF) was "the way to go", particularly as the Retail Distribution Review (RDR) had presented advisers with an opportunity to shed any dependency on providers. He said ACF had failed in Australia after it moved to a fees-for-advice model because, when markets declined, it became harder for advisers to justify the value of their advice if providers were still involved in the remuneration process. "I don't think adviser charge facilitation using products to charge fees is the way to go," said ...

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