Contingent charging is 'hangover' from commission - Paul Lewis

RDR brought sweeping changes to adviser charging

Hannah Godfrey
clock • 1 min read

Contingent charging is a "hangover" from commission and should not be used as a payment method, according to BBC journalist and money columnist Paul Lewis.

Speaking at The Great Pension Debate II in Port Talbot, the journalist said contingent charging is the equivalent of charging commission and throws up conflict of interest issues. "[Contingent charging on defined benefit (DB) transfers] is commission to me," he said. "If a client does one thing, you do nothing, if a client does another, you get paid - there is a conflict of interest from the start, it's a percentage of the amount transferred, a percentage that you only get if they transfer, logically to me, that is indistinguishable from commission, whatever you might call it." Commis...

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