Advisers inAXAdealer groups will no longer have a remuneration bias to recommend AXA’s own funds management products under a raft of changes to the group’s fee model and dealer network direction.
Under the changes, fee-for-service advisers will now receive the same adviser/dealer split regardless of the products they recommend. This follows the lead of a similar AMP fee structure put in place in July of 2002.
Authorised Representatives Association (ARA) chairman Leo Menkins, representing the interests of AXA advisers, says this means AXA will not be penalising advisers who are trying for advice independence.
He also says AXA will now attract and keep advisers based on its ability to deliver dealer support services, including compliance, training and business development, for the money being paid by advisers.
“If those things aren’t up to speed with what I pay them in the dealer split, then I can source the market for someone out there who can provide better,” Menkins says.
As part of the changes, AXA has also put a maximum cap on fees paid to the dealer, meaning highly productive advisers will pay a percentage of income up to the cap and then be earning money for themselves.
Announced over a series of professional development days this week, AXA has also emphasised advisers in the network must rise to acceptable minimum levels of education and compliance.
AXA national dealer group manager Andrew Waddell says the changes are a result of an exhaustive review of its dealer model, with AXA deliberately attempting to position itself as a leading dealer network.
He says the new fee model follows recent AXA moves on client portability, that ensure its advisers can take clients with them on leaving the dealer in line with contractual adviser agreements.
The changes will effect advisers in AXA’s dealer groups -AXA Financial PlanningandCharter Financial Planning.
