What role does commission have to play in the provision of pure protection advice, and could the market ever move towards a purely fee-based proposition?
Market viewsStuart Tragheim, LV=Firms offering protection advice as their sole proposition to customers are fairly thin on the ground. Those who wish to make a success of this niche business model need to invest heavily in infrastructure to support their propositions. Current market leaders in the field rely on the commission-based remuneration model to support their significant commitment to infrastructure development. If an advisory firm with ambitions to handle significant volumes of protection business had to rely solely on fee income, its ability to invest in technology, such as te...
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