Brokers offered 10% commission

An IFA firm has launched an unregulated investment product offering brokers with high net worth clients commissions of up to 10%.

The CentrePointe Development-Berkeley James fund offers 12% income each year via guaranteed capital returns and around 12% of the fund’s profits at the end of three years.

Commission is paid to brokers on a sliding scale depending on the total amount invested, with the initial rate at 5%. Trail commission is based on the fund’s performance and offers a further 5%.

The commission is paid by surplus profits already made rather than taken from clients’ investments.

Karen Butt, business manager at Berkeley James, says: “Brokers and IFAs are crying out for income opportunities. This is a non-regulated product with no risk to capital investment.”