The process will not go live until Q4 but Financial Planners can sign up their clients from today to seek their consent for them to be moved to the adviser charging process. Skandia will also make a demo version of the new online process available in Q3.
Percentage and monetary options will be available across initial, regular, switch and ad-hoc fees.
To satisfy adviser charging rules, Financial Planners must comply with four key principles as detailed by the Financial Services Authority.
- Service and cost: Advisers must make different charging options clear to customers and offer choices. For each option, this must include the services offered and the cost of these.
- Disclosure: Advisers must explain and disclose/illustrate how advice charges impact investment returns.
- Suitability: Advisers must consider the most suitable / cost effective way for customers to pay adviser charges – for example, from a product, direct to the adviser, or via a platform cash facility.
- Right to cancel fees: Advisers must explain to customers how they can cancel fees and have systems in place to return fees paid after cancellation.
Nick Dixon, marketing director of Skandia, said: “Advisers can sign up their Skandia customers to adviser charging immediately, with Skandia’s flexible adviser charging system going live in Q4.
“The move to adviser charging must align with four key principles and advisers should check whether their current arrangements with other platforms will be adequate post-RDR.”