IFA wants mixed commission option on protection
Tue, 11 Aug 2009
Providers are being asked by a protection and investment IFA to help him take on a uniform method of charging across both sides of his business.

Peter Chadborn, co-founder of CBK Colchester, wants to charge for protection in a way that corresponds to pensions and investment advice, with a mix of initial and where necessary, trail commission. He says that protection advisers should have the option of receiving an up front payment to reflect their "initial" work and the remainder spread over time.

According to Mr Chadborn, the "all or nothing" current options, which are full indemnity or non-indemnity commission, are testament as to why protection is seen as the poor relation in financial services. For work that is related to investments and pensions, CBK adapts the initial commission to reflect the amount of work that has been undertaken upfront and then factors in trail commission if ongoing services are required.

He said: "Protection is way off the pace when compared to the rest of the industry with regard to remuneration."
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