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Paradigm increases fees per adviser by 30%

  • 23/05/2012
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IFA network Paradigm Financial Advisers has increased fees for some members by 30%.

Existing advisers’ fees have increased from £500 per registered individual per month to £650.

Advisers within the group’s Mortgage and Protection proposition have also seen fees increase, to £450 per adviser per month.

In a communication with its adviser customers, Paradigm said the “increasing cost of regulation and PII (professional indemnity insurance) means it is necessary for us to review our pricing model.”

The changes came into effect from 1 April.

An adviser with one of the group’s appointed representative firms said he believed the changes would make members look elsewhere.

“It is now exceptionally expensive to be with [Paradigm],” the adviser, who asked to remain anonymous, said. “I predict many firms leaving the network.”

Paradigm was unavailable for comment but, in an email to clients, it said it was “totally committed” to ensuring it stays competitive.

The development follows similar fee increases at rival network Sesame.

Earlier this month, the company announced headline fee increases of 50%, although it said the average per firm impact was closer to 10% as it had increased the amount members keep in commission income.

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