remuneration

There have been a few developments recently which have put the spotlight on the relationship between the client and the adviser and, more specifically, ownership of the client between the provider and the adviser.

Thinc Group is introducing a radical remuneration structure which offers financial advisers "a dignified exit from the industry" at retirement but requires those not bringing in enough annual revenue to change their status within the firm.

IFAs have been warned implementation of an EU directive next year could require financial advisers to work harder to prove commission remuneration enhances the service offered to consumers and should not be considered an inducement from providers.

The Financial Services Consumer Panel has laid down a challenge to the financial industry to change its entire culture and live up to its "treating customers fairly" requirements.

All financial services firms must do more to ensure customers are treated fairly, says the FSA, as its own scathing research suggests some advisers still recommend products according to remuneration prospects rather than the needs of the client.

Policyholders threatening to hold directors to ransom by not voting for resolution 12 - the Report of the Remuneration Committee on Directors' Remuneration - at today's annual meeting were disappointed by a narrow margin as 57% of members voted in favour....

The suggestion that product providers be paid according to the ‘level of satisfaction' which a product provides, seems to be taking the nanny state to every greater extremes.

Larger IFA firms can now assess the financial impact of the FSA's "cost of advice menu" on their business, thanks to the launch of specialist software by Cboxx.