M
misterh
Member
What exactly are the monetary changes under the RDR for the affected parties and policies?
My understanding is that the client pays the FA an advisor fee and then is charged an ongoing fee from future premiums which gets paid to the FA. The life companies are not remunerating the FA's in any way.
How does this work practically? Does the customer pay the FA directly or does the life insurer forward the FA their fees from the premiums that they are paid? What is the shape of the fees like now compared to previous i.e. is the IC:RC roughly the same or has it changed to reduce the IC weight to satisfy the customer (assuming they prefer to see more of a smoothed charging structure)? Does the client see 2 charging structures now - the FA and the insurers charges? If so have the insurers changed their product charges accordingly? Excuse my ignorance but I have no idea of the changes made at ground level and the course notes don't really go into this, possibly because it wasn't clear at the time. Any help much appreciated - thanks
My understanding is that the client pays the FA an advisor fee and then is charged an ongoing fee from future premiums which gets paid to the FA. The life companies are not remunerating the FA's in any way.
How does this work practically? Does the customer pay the FA directly or does the life insurer forward the FA their fees from the premiums that they are paid? What is the shape of the fees like now compared to previous i.e. is the IC:RC roughly the same or has it changed to reduce the IC weight to satisfy the customer (assuming they prefer to see more of a smoothed charging structure)? Does the client see 2 charging structures now - the FA and the insurers charges? If so have the insurers changed their product charges accordingly? Excuse my ignorance but I have no idea of the changes made at ground level and the course notes don't really go into this, possibly because it wasn't clear at the time. Any help much appreciated - thanks