Lighthouse is open to restricted advice choice
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Hickey: ‘May be too onerous’
Lighthouse Group chief executive David Hickey says the company will move into the restricted advice sector if its 800 advisers show a demand for it.
Hickey says taking the restricted route will be no easier for advisers in terms of qualifications but he believes that some advisers may still prefer that option.
He says: “The logic behind restricted advice is less to do with qualifications and more to do with the FSA saying to firms that if you are whole of market from January 1, 2013, we expect that you know about hedge funds and the mechanics of ETFs for example. It may be that some see that as too onerous.”
This week, Lighthouse posted profits of £117,000 for the first half of this year, double the £56,000 profit in the first half of 2009. Revenue increased by 11 per cent to £32.6m from £29.3m.
Hickey says he expects to see the company’s market share rising as a result of the retail distribution review.
He says: “It is impossible for the big life companies and investment groups to maintain these huge broker consultant networks which go countrywide to see small organisations as the cost is simply too high. They are starting to focus on bigger firms like Lighthouse.”
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