LibDems say IFAs are a "doomed species"
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The IFA is a “doomed species” which will suffer at the hands of an increase in demand for free, electronically delivered advice, according to Liberal Democrat Treasury spokesman Lord Newby (pictured).
Money Marketing asked Newby, who was speaking at a fringe event at the Liberal Democrat conference in Liverpool today, what role IFAs have in the future of financial services.
He said: “The traditional model of the IFA looks to me like a doomed species. I think there will be a drift away from old fashioned financial advice.
“The regulatory requirements on IFAs are so great, the cost of giving advice is so great and I cannot image why anyone would want to do it. It just looks to me really, really hard.”
Newby said his children’s generation would seek advice almost exclusively online.
He said: “I do not think they would want to go through the appalling business of laying out all their details and taking an hour to go through everything the way we did when we were buying financial services products.
“I hope people do take financial advice but they will want it free and they will want it delivered electronically.”
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Readers' comments (120)
Anonymous | 21 Sep 2010 11:40 am
“The regulatory requirements on IFAs are so great, the cost of giving advice is so great and I cannot image why anyone would want to do it. It just looks to me really, really hard.”
So why do the government of the day sit by and allow the regulator to continue down this path? Is the regulator more powerful than government?
Perhaps the real reason is that come the next election Lib Dems will be as much a doomed species as IFAs
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Paul HArding | 21 Sep 2010 11:43 am
“The regulatory requirements on IFAs are so great, the cost of giving advice is so great and I cannot image why anyone would want to do it. It just looks to me really, really hard.”
...er, so why not make the provision of decent advice simpler, easier and cheaper so MORE people can get it, not less?
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Anonymous | 21 Sep 2010 11:45 am
Ha ha! Surely he means the LibDems are a "doomed species"? I think they will be extinct before IFAs.
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George Emsden (cancerIFA) | 21 Sep 2010 11:45 am
Have to say he is probably right. Looks like long-term survivors will be HNW client firms, and employer/group based firms or maybe niche ones. Professonal connections will be crucial.
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Anonymous | 21 Sep 2010 11:45 am
This just shows how important that it is that the IFA demonstrates the value of what they can offer - tranasctional IFA work will die.
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Robert | 21 Sep 2010 11:47 am
Confirmation of what I've always suspected...Lib-Dems are thick.
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Nick James | 21 Sep 2010 11:49 am
Newby comments "appalling business of laying out your details to an IFA" how strange, would he rather we guessed and got the advice wrong? In any case if he thinks his kids can sort out their own inheritence tax planning on line then why do we need to take a huge amount of extra qualifications which are demanded by the FSA or government under another banner??? I suggest you engage you brain before you open your mouth.
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Neil Melton | 21 Sep 2010 11:49 am
Thanks for the vote of confidence!!!
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Leo | 21 Sep 2010 11:49 am
What a Plonka!
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Michelle Stevens | 21 Sep 2010 11:51 am
Heaven forbid that people would spend a whole HOUR simply wasting their time choosing the best mortgage deal for their needs or making sure their protection plans are arranged properly and written in trust... what a waste of time! (NOT)
I cannot believe the faceless internet suits all situations. Clients do still value the face to face contact received when visiting a broker/IFA.
I bet Lord Newby doesn't make his investment decisions without some advice.
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