Advisers are calling for flat life insurance commissions to enable them to deal with administering these payments in a fee-for-service model.
Lanyon Partners CEO Bruce Birchall says flat commissions would replace up-front payments and trails.
“We need to tell the life companies we now need flat commissions to work within a fee-for-service model” he said
“Flat commissions will bring pricing down and in that sense it is a win for the client.”
Mr Birchall says it will be complex running both fee-for-service and commission payments in a practice such as Lanyon Partners, as it provides accounting, investment, life and general insurance advice.
“We have a lot of people involved advising clients in different areas, so it does raise the question of how much we charge,” he said.
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