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Helping advisers in the right direction with RDR
Creating a shared approach to Adviser and Consultancy Charging.
As part of our ongoing commitment to the Retail Distribution Review (RDR) and the adviser community, we have teamed up with other product providers and experienced advisers to develop "A shared approach to Adviser and Consultancy Charging".
Download the guide
A shared approach to Adviser and Consultancy Charging (PDF, 877K).
Although many of the regulatory rules and guidance for the RDR are in place, the industry still needs to develop a view on how certain processes and activities around Adviser Charging (AC) and Consultancy Charging (CC) will work in practice.
We believe this guide represents one of the first concrete deliverables around the RDR from the industry.
Joining forces to help pave the way
Through a series of workshops and meetings facilitated by Deloitte, we (Scottish Life, Prudential, Legal & General, Friends Life, Aegon and Sesame Bankhall Group) have developed a common approach to facilitating AC and CC through the product by creating a series of high level principles and processes.
Supported by key industry figures
"The ABI supports the RDR which will introduce massive changes for the financial services industry... so we welcome this new guidance as it will help advisers, insurers and others to understand ways in which Adviser and Consultancy Charging can work in practice."
Maggie Craig, Director of Financial Conduct Regulation, ABI
We've pulled together the output from the workshops and meetings and published in a user-friendly guide.
With the RDR implementation date now less than 12 months away and further clarity still needed in a lot of areas, we believe this guide will be the starting point to help to clarify many of the practical issues surrounding the AC and CC functionality.
With industry support from the ABI and AIFA, the guide aims to:
- summarise the general principles that we believe will underpin AC and CC,
- outline the key processes that we believe will underpin AC and CC in a step-by-step format, and
- set out the AC and CC charging structures which we believe are likely to be offered by the provider community.
A common approach to benefit all
We strongly believe the work we have carried out will be of benefit to all parties involved in an AC or CC arrangement. The guide aims to ensure all involved have a common understanding of the activities and processes that underpin AC and CC.
- We believe that it will introduce a common industry way of working and thinking for AC and CC, allowing for a common understanding of how things will work.
- We also believe that what we have come up with will help to simplify processes and understanding of how things will work.
- And we hope the work we've done will help the adviser community to better understand how to implement AC and CC, and as a result lead to a smoother, more confident transition for advisers to RDR.
With you all the way
We have been fully supportive of the RDR and what it is trying to achieve for a long time. We've been working on building an RDR-friendly business since 2003 when we introduced our RDR-friendly remuneration option Financial Adviser's Fee.
And we've been helping large numbers of advisers segment their client bank to make for a more profitable and sustainable RDR-ready business model post RDR.
This latest initiative is one in a long list of things that we will be doing to support the adviser community in 2012 with making the RDR transition.
We will continue to be 100% committed to the intermediary market post RDR, and will be with you all the way to help ensure as smooth a transition as possible to the new RDR world.
For more information
If you have any queries about our latest initiative or you want to discuss how we can help you with making your business RDR compliant, speak to your usual Scottish Life Consultant or Account Manager or call us on 0845 60 40 800.
Published 5 January 2012
37W0948
For professional advisers only
