Nearly two thirds of financial advisers in the Middle East are still heavily reliant on upfront commissions in a much more pronounced way than other regions in the world, according to a poll in International Adviser’s regional digital editions.
Financial planning firm Abacus Financial Consultants has started disclosing commission on certain products, ahead of rules that the UAE regulators are expected to introduce to require advisers to do so.
Upfront commission remains a burning issue in South Africa, as the nation’s financial advice sector awaits the regulator’s next move following the signing of the ‘Twin Peaks’ legislation into law.
A hurricane of difficult regulation is to going hit the European financial advice industry, and for some companies and countries it is already too late, the audience of IFAs at International Adviser’s Future Advisory Forum Europe heard on Thursday.
Half of UK clients would prefer to pay a fixed rate for a standard piece of advice work, such as setting up a pension, but almost a quarter want the return of traditional commission.
Guardian Wealth Management has launched a new division to focus on client relationship culture after research found that most expats feel the ongoing service they receive from their IFA firms has declined or stopped altogether.
The Isle of Man Financial Services Authority (IoMFSA) has met with the UAE Insurance Authority to compare notes on pivotal life sector reforms due to be introduced in their respective jurisdictions.
Advisers in Australia have been warned by the country’s financial regulator not to inappropriately switch clients into charge-heavy products ahead of major changes to commission payments and clawbacks on insurance policy sales.
The Isle of Man financial services regulator is considering scrapping broad commission disclosure requirements for life companies headquartered on the island, in favour of implementing policyholder-specific disclosures by 2019, according to industry sources.
Financial advisers in the UK still earn a quarter of their income from commission, according to latest figures from the Financial Conduct Authority (FCA).
The realities of Mifid II are beginning to dawn as advisers across Europe start to realise that commission transparency will be led by product providers, which could leave them feeling a bit exposed, says Shane Wood, business development manager for European IFA network OpesFidelio.
International insurance companies headquartered on the Isle of Man will only have to spell out to customers how much commission they will have to pay to intermediaries over the life of the product at the end of the sales process.
