The Retail Distribution Review (RDR) – Commission to Fees

Intended audience: Existing clients of BLM

On the 1st of January 2013, the Financial Services sector went through one of the biggest overhauls since the Financial Services Act was introduced in 1986.

It was introduced to improve service levels and transparency and to ensure the interest of Financial Advisers and their clients are aligned.

One of those changes is to move from commission to fees. Whilst commission has sometimes been a little restrictive from a remuneration point of view for the services undertaken for our clients, BLM has always used it in lieu of a fee. However, the move to fees does allow the cost of our services to be tailored to the work we do for you and is outlined in our Terms of Business letter that we provide you with at our meetings – so
far so good.

As is usually the case, when new legislation is introduced, there is a large amount of disruption and change required, especially to I.T. systems right through the supply chain.

BLM has been discussing this with clients who in turn have been signing client fee agreement forms since early last year, and these are now being sent to the respective platforms/service providers. They in turn will be contacting clients to confirm this.

As a client of ours, if you have received correspondence with regards this matter and need a reminder as to what it is about, please give us a call on 0113 2825017.

This will not be the last you will hear from us on this matter! There are a whole host of knock on effects, or “unintended consequences” as they put it, such as; clean share classes etc……no doubt we will be discussing this with you before April 2016!

Chris Malkin, DipFA, M.ifs
Director
On behalf of BLM Partnership Ltd.

Visit our website: http://www.blmifa.co.uk