Push providers on adviser charging rules

With only weeks before the retail distribution review deadline, the details of adviser charging are still being worked out by providers and IFAs. At this crucial stage, paraplanners must be more proactive than anyone, pushing providers for information and clarity, scrutinising regulation and rethinking their own understanding if needs be.

I thought I understood the rules and that applying these to the ‘real world’ would be relatively straightforward. In the main, this turned out to be the case, but some issues required a rethink.

Differences in the rules

Understanding the rules set out by the Financial Services Authority does not automatically mean I would understand the rules a provider would apply to its own processes.

From my experience, it looks as if all providers have different processes and system requirements. The trick to a smooth transition in January will be to ensure you understand the subtle differences between them. And don’t expect all the information to be easily available. If you’ve not done it already, I recommend starting now.

Richard Allum is managing director of ParaPlanPlus