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&#39IFA management and systems are a big joke&#39

Product providers see IFAs as bad managers with poorly organised businesses and are more interested in advisers than systems, according to new research.

The survey, by Camp Chipperfield Hill Murray, foresees a greatly reduced independent sector dominated by new distributor companies owned by providers, draining quality advisers from existing channels.

The qualitative research, based on indepth interviews with high-level provider executives and IFAs, revealed that providers are more interested in RIs than IFA firms&#39 business systems and brands. One respondent said: “What would you be paying for if you buy IFAs? The management? That&#39s a joke. The systems? That&#39s an even bigger joke.”

Another respondent, discussing the ability of IFAs to organise brands, said: “It is like herding peacocks. They all strut with their beautiful plum-age saying &#39aren&#39t we beautiful.&#39 But they screech in the night.”

CCHM chairman Lucian Camp says: “The research predicts a significant number of new distributor hubs that are funded by alliances of providers that will suck RIs from existing businesses. There will be a lot of polishing of CVs.”

IFA Simpsons of Brighton partner Andrew Merricks says: “If you are running a big salesforce, you do not want anyone with an opinion different to yours. Knowledge gets in the way.”

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