Just Group has launched a referral service that allows advisers to earn up to £1,755 in ‘introducer fees’ for referring clients onto another adviser if they are unable or unwilling to give them advice.
Under Just Group’s new introduction scheme advisers can refer clients wanting either retirement income, care funding or equity release advice to Just Group business Hub Referral Solutions.
The business said advisers had earn typical fees of £390 for retirement income referrals, £1,610 for equity release referrals and £1,755 for care funding referrals. These are based on introducer fees of 1%, 1.75% and 1.5% respectively.
Hub will pay introducer fees and has given example fees for completed referrals as:
– Retirement income: £390 (based on introducer fee of 1%, average fund value £39,000)
– Equity release: £1,610 (based on introducer fee of 1.75%, average initial advance £92,000)
– Care funding: £1,755 (based on introducer fee of 1.5%, average purchase price £117,000)
Through the service retirement income clients will get either guidance or regulated advice from Just, depending on their needs.
Research by Just has found a quarter (26%) of prospective clients who approached advisers for retirement income advice in the last 12 months did not fit the firm’s business model, yet 79% of advisers admitted to taking on a client they knew would not be cost-effective.
“Advisers often come across prospective clients who are like a square peg in a round hole – they don’t neatly fit into the firm’s business model,” said Stephen Lowe, group communications director at Just Group, in a statement.
“This could be because it will not be cost-effective to advise the individual, or the advice is in a specialist area they do not cover or perhaps even because they are simply too busy serving existing clients.”