Adviser platform Parmenion said today (21 May) it plans to introduce tiered adviser charging on its platform “to support evolving business models in advice businesses”.
It highlighted how new research, indicating 40% of advisers have or are planning to change their charges, led to Parmenion’s decision to develop a structure for users to “tailor charges to different client segments quickly and easily”.
In the light of Consumer Duty, it provides valuable support for advice firms who want to actively manage their charging structures to demonstrate the value they provide, the statement said.
This was ” just one of many new features” Parmenion said it would be introducing this year.
From late summer this year, Parmenion will enable advisers to create different adviser charging structures on the platform, determine the number of tiers and the percentage charge for each tier, and also to link new and existing clients to the correct tiered charging structure and move clients easily between charging structures
Parmenion head of retirement and wealth planning, Daniel Edwards said: “Adviser charging replaced commission as part of the 2012 Retail Distribution Review (RDR). Since then, there has been surprisingly little innovation, with single percentage-style charging still underpinning many advised businesses.
“At Parmenion we pride ourselves on listening to advisers and responding to their needs. We are introducing tiered adviser charging in answer to this key ask which we have been hearing from many of the advisers we speak to and is backed up by the latest Langcat research and Investment Trends reports.
“Having the flexibility to shape their own charging structure for different clients should help advice firms to meet their obligations under Consumer Duty and evidence how they are providing value and delivering good client outcomes.”
