CA Summit 2008: Summit delegates take relaxed view over falling commissions from group pension providers

Falling commissions from some group pension providers will only hit the bottom line of 3 per cent of delegates at the Corporate Adviser Summit last month.

Delegates, taken from the largest 40 corporate intermediaries in the UK, almost unanimously said pressure on group pensions commission would not affect their business levels over the next three years in any way.

A fifth of firms polled were entirely fee-based so were unaffected by commission changes, while a further 46 per cent said they still expect some providers to continue to pay commission so they will not have to change their business model.

And 31 per cent said they were already moving to a fee-based model anyway, so any changes to commission would not affect them.

The impact of the Retail Distribution Review on corporate intermediaries was also expected to be limited. A poll found 16 per cent of advisers thought it would have no impact on the way they conduct their business, while 46 per cent described the impact as limited. A significant minority, 14 per cent, said they thought they would have to change their business model on account of the RDR while 24 per cent thought the impact would be significant but their business model would not need alteration.

More than four out of five advisers thought the standard of professionalism across the corporate intermediary sector was either very good or acceptable, with 14 per cent saying there was a need for improvement.