Prudential encourages move away from traditional commission model

The provider wants distributors to move from transactional-based advice, which it believes has an initial commission bias and encourages churning, to establishing long-term relationships with clients. Prudential believes remuneration should reflect the level of advice given and it wants intermediaries to increasingly adopt 'factory gate' pricing, where the price of the product is set by the provider at the outset and the adviser and client then decide what remuneration should be given, and added on top. As a result, it is changing its distribution model by splitting the country into four...