Findex Group will move its financial advice licensees away from commission-based payments for risk advice and implement a pure fee-for-service model.
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.
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