Adviser charging is the system that was brought into play in 2012 to be the new form of payment that advisers receive.

Pre-RDR, advisers could have a choice of fees or commission, but the FCA felt that this introduced bias into the sector.

While clearly some advisers had enough integrity to not let commission payments sway them, and indeed many argued that the commission payments from big policies helped subsidise the advice given to less affluent clients, it was clear that every time a provider offered a big commission on a new product, it would see a spike in sales.

How does adviser charging work, and what are the pitfalls?

This guide seeks to cover the basic points of adviser charging, including the rise of contingent charging, and sets out how advisers can make it work.

My thanks go to: Simon Cowley, wealth management consultant at Walker Crips Wealth Management; Gemma Harle, managing director of Intrinsic’s financial planning and the mortgage network; Dr Matthew Connell, director of policy and public affairs for the Personal Finance Society; Ricky Chan, director and chartered financial planner at IFS Wealth and Pensions; Jeannie Boyle, director and chartered financial planner at EQ Investors; Alastair Lewis, senior business development manager at Blackfinch; Mihir Kapadia, chief executive of Sun Global Investments;  Kay Ingram, director of public policy at LEBC Group; the Heath Report; Steven Cameron, pensions director at Aegon; Verona Kenny, head of intermediary at Seven Investment Management.