A spokesperson for Findex Group confirmed to ifa’s sister title Risk Adviser that the non-aligned group will transition away from its current hybrid commission model and introduce a fee-for-service model from 1 July 2015.
“Findex and Centric Wealth – one of its companies – will move to a fee for service model for insurance, and over the next few months Crowe Horwath will also convert to a fee for service model,” she said.
“They will get rid of commissions completely.”
The spokesperson said the decision to move to a fee-for-service model for risk advice had been something the group’s chief executive Spiro Paule “had been considering for years”.
Findex Group’s remuneration change follows the recent announcement from non-aligned licensee Fortnum Financial Advisers that the firm will adopt a fee-for-service model, with hybrid or level commissions in a bid to “self-regulate and ward off further legislative attack”.
AMP and Centrepoint Alliance have also announced they will drop upfront commissions.
Gee…that would involve a lot of invoicing per year to make a buck and assumes people pay the invoice. Hope you collections department is up to scratch.
Get rid of commissions completely and do fee for service. Well good on you and good luck! I can just see everyone flocking to see you with open cheque books to get their risk advice! I am sure you will feel cleansed once you have gotten rid of those nasty commissions. I mean really, it’s not how you are remunerated, it’s about giving good appropriate risk advice that matters at the end of t he day. I can assure you that at the end of the day, people don’t give a damn whether you get commission or not, they want good sound advice and what the have meets their needs and solves their problem.
But again, good luck and I’m sure the product providers will not be reducing their premiums anytime soon. In fact one has just increased their income protection rates by over 8%.
This would be breaking news if they had any big risk writers left – but, well, they’ve all recently left…