Thriving in the RDR World
IFS supports and embraces the RDR
ITS GOOD FOR CLIENTS, ADVISERS AND IFS - PROVIDED IT IS PREPARED FOR ! The end result will be a business that is professional and financial stable - what can be wrong with that!
IFS has set itself a a miletone programme to ensure that it is fully RDR compliant by mid 2012.
The three 'key' elements of RDR, qualifications, recurring income / fees, and servicing are all being addressed in a postive way - one that will enhance the customer experience.
Qualifications.
IFS has implemented a structured programme to achieve at least the Level 4 standard. We will be supporting those adviserrs that need to get the qualifications by agreeing a programme with them that ensures that they are 'on track' with their studying on a weekly basis, allowing time for revision before taking the examination.
IFS will pay for successful completion of the examinations.
Revised Commission Arrangements
IFS has long been an advocate of taking lower initial commissions and taking trail / recurring income. So much so that nearly 40% of our income in 2009/10 was recurring - way above the indusrty norm.
This has been driven by the fact that all of our advisers are fully credited with such commission / income and so have built up a healthy regular income already.
As with our Qualifications programme, we have introduced a structured programme to ensure that the changes to the commissions regime, due in 2013, will have minimal impact.
Customer Servicing
In order to receive ongoing trail commission, the FSA state that you must be able to demonstrate that you are servicing your clients and that they are getting value for money.
IFS have always serviced their clients regularly, so this isn't a problem. We have though formalised our approach, using a state of the art database an client-contact sytem that facilitates on-going client servicing.
Finally, we have developed a sysytem that allows an exiting adviser's client to be serviced centrally, thereby protecting their 'retirement income' - we believe that this is unique in the marketplace.
