RI Advice unveils new financial adviser agreements
RI Advice Group has rejigged its financial adviser agreements, adopting a 'practise what you preach' mentality when it comes to fee for service.
The dealer group has ditched the traditional business model of relying on a percentage of commissions for revenue, and now charges its advisers a flat annual fee for its services, according to RI Advice chief executive Paul Campbell.
"We're saying 'we've got to practise what we preach'. We're really big advocates of fee for service. So if you're going to tell [your advisers] that they should do fee for service, it makes sense that you should do the same thing," said Campbell.
The licensing costs for Xplan will also be bundled into advisers' annual fees, and all conflicted payments will be removed.
"We used to share the revenues. That included things like volume rebates, which we no longer share. The Government has quite clearly said that things like that are conflicted payments," said Campbell.
The new adviser agreements also include reduced fees - something that has been achieved through the removal of commissions and the economic restructuring of the dealer group's business model, Campbell said.
The dealer group has also released an "updated and easy to understand financial services guide".
"[The new agreements] have been really positively received by our network, and we've already got new practices that are joining because of it," Campbell said.
RI Advice has seen "three or four" practices sign up as a result of the new adviser agreements in the last few weeks, Campbell said.
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