Selectapension is RDR Friendly
When the Retail Distribution Review (RDR) comes into force on 1st January 2013, it will be a fundamental change in the way Advisers take remuneration. The increased flexibility and transparency will require a system that can cope with this and be documented in client facing reports.
To pre-empt the changes required for RDR, we have revised our calculators with a new ‘Remuneration’ screen which will allow you to use the fee based charges you have agreed with your client using RDR friendly plans or continue with the current commission based structure in the lead up to 2013.
Fees may be paid separately from the products or taken via a combination of fee types based on either the premium, the fund or a combination, by specifying either a percentage, an amount or again a combination of the two.
There is an ‘Advance Fee Styles’ option so you can replicate the fees you have agreed with your client, how the fee will be received and the timing of the payment. You also have the flexibility to specify the frequency, duration and commencement of the payments, for example, you may wish to take a fee on the regular premiums over a period of 24 months, but delay the commencement of this payment period for 12 months. The flexibility of the options allow fees to be taken from 100% of the premiums until the total fee is paid, also fees may be taken from any premium indexation.
A ‘free text’ box is available for you to give a full description of the remuneration arranged with your client (for example if the fee is to be paid by your client separately from the new product) and will appear in the report for the client.
RDR is not the first and will not be the last major change that Advisers will have to react and adapt to, our aim is to provide you with flexible, robust functionality to enhance the user journey and ease transition.
Click here for an example of the new Remuneration screen