Thursday, 28 June 2012 13:07
AXA Wealth and Parmenion announce adviser charging structures
Institute of Financial Planning sponsors AXA Wealth and Parmenion have announced their new charging structures ahead of the RDR changes on 1 January.
Parmenion will introduce a tiered structure which moves from 0.30 per cent down to 0.15 per cent based on the entirety of a client's portfolio size.
Once a portfolio exceeds £300,000 there is a reduction from 0.30 per cent to 0.25 per cent and for portfolios in excess of £1.5m, clients will pay no more than 0.15 per cent.
Richard Mein, managing partner at Parmenion, said: "The new sliding scale is attractively priced across all portfolio sizes.
"With advisers increasingly looking to outsource to investment platforms, it is important that we are competitive and provide the investment services that enhance an advisers' proposition to their clients."
AXA Wealth has said its adviser charging will apply to all products from 31 December, encompassing both new business and legacy business.
It said many firms working with AXA Wealth will experience minimal change as they would already be used to being remunerated through fees rather than commission.
Products such as the Elevate platform were built with the RDR in mind and any previously agreed remuneration would continue with the new adviser charging options being introduced.
David Thompson, managing director of marketing and distribution, said: "Most companies have yet to state their position in terms of how they are going to treat their adviser charging proposition in a post-RDR environment.
"As a company known for its pioneering approach to adviser remuneration, I am very pleased that AXA Wealth is ahead of the game."
Parmenion will introduce a tiered structure which moves from 0.30 per cent down to 0.15 per cent based on the entirety of a client's portfolio size.
Once a portfolio exceeds £300,000 there is a reduction from 0.30 per cent to 0.25 per cent and for portfolios in excess of £1.5m, clients will pay no more than 0.15 per cent.
Richard Mein, managing partner at Parmenion, said: "The new sliding scale is attractively priced across all portfolio sizes.
"With advisers increasingly looking to outsource to investment platforms, it is important that we are competitive and provide the investment services that enhance an advisers' proposition to their clients."
AXA Wealth has said its adviser charging will apply to all products from 31 December, encompassing both new business and legacy business.
It said many firms working with AXA Wealth will experience minimal change as they would already be used to being remunerated through fees rather than commission.
Products such as the Elevate platform were built with the RDR in mind and any previously agreed remuneration would continue with the new adviser charging options being introduced.
David Thompson, managing director of marketing and distribution, said: "Most companies have yet to state their position in terms of how they are going to treat their adviser charging proposition in a post-RDR environment.
"As a company known for its pioneering approach to adviser remuneration, I am very pleased that AXA Wealth is ahead of the game."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again
This page is available to subscribers. Click here to sign in or get access.