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Towergate plans charging structure overhaul

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Towergate plans charging structure overhaul

National IFA Towergate Financial is overhauling its fee structure for the retail distribution review (RDR) to include a charge for clients who do not implement the firm's advice.

Towergate currently does not charge clients who receive advice but do not implement it.

However the firm is planning to introduce a new charging structure which would charge clients for a plan, even if it is not then implemented, to reflect the work done by the adviser.

Warren Page (pictured), chief executive of Towergate Financial, said: ‘That is a model that is common with a lot of businesses today, and I think it will be more common with many businesses next year. It is highlighting to the client that this is a professional industry.

‘You don’t go to a solicitor or an accountant for free advice, you’ll get an invoice in the post very quickly.

'At the moment, people can get a recommendation and do nothing with it, and we’re saying there is a cost that comes with that. In a fee-based world, if a client doesn’t transact with us, they will still carry a charge for the work that’s been done for them.'

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