Parmenion has introduced tiered adviser charging on its platform to support evolving business models in advice businesses.
From late summer this year, the platform will enable advisers to create different adviser charging structures on the platform, determine the number of tiers and the percentage charge for each tier.
Advisers will also be able to link new and existing clients to the correct tiered charging structure and move clients easily between charging structures.
The changes will allow Parmenion users to tailor charges to different client segments quickly.
It will also provide support for firms who want to actively manage their charging structures to demonstrate the value they provide as part of consumer duty.
Daniel Edwards, head of retirement and wealth planning at Parmenion, said: “Adviser charging replaced commission as part of RDR. Since then, there has been surprisingly little innovation, with single percentage-style charging still underpinning many advised businesses.
“We are introducing tiered adviser charging in answer to this, which we have been hearing from many of the advisers we speak to and is backed up by the latest Lang Cat 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.”
This comes after Defaqto’s annual platform service review for 2024 found adviser satisfaction levels fell on average by 7 percentage points.
Some 34 per cent of advisers had changed one or more of their preferred platforms in the past year.
Darren Winfield, insight consultant (wealth management) at Defaqto, said: “The rise in platform changes shows advisers are becoming increasingly confident making switches to improve experience and accessibility for their clients. This is likely due to the impact of consumer duty regulation, alongside the impact of mergers, takeovers and technology updates in the past 12 months."
alina.khan@ft.com
