Advisers' contribution to funding government retirement guidance service Pension Wise should be reduced because they are not benefitting from its existence as much as anticipated, according to the Association of Professional Financial Advisers (APFA).
Firms listed in the Financial Conduct Authority's (FCA's) A13 fee block, which houses most advisers, should pay for 5% of Pension Wise's estimated £35m annual running costs, rather than the 12% they contribute currently, the trade body said. The regulator originally suggested A13 firms contribute 30% towards the bill - with life insurers putting in just 17% - before reducing it. It conceded advice firms would only benefit if consumers sought regulated advice having taken up the free guidance, whereas product providers would more obviously benefit through re-distributed investment monies....
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