View more on these topics

&#39IFA networks will lose market share to banks&#39

Squeezing margins will force IFA networks to move towards multi-ties following depolarisation, losing market share to highstreet banks in the process, according to John Scott & Partners chief executive Toby Strauss.

He told the MM round table that depolarisation would likely have a significant impact on the IFA sector.

Strauss, who until he joined JS&P last year was managing director of Charcol and one of the industry&#39s most well-known commentators, said the banks&#39 offering will improve considerably in consumers&#39 eyes, thereby allowing them to steal market share.

He predicted problems down the road, saying he could envisage an inquiry 10 years from now looking at the construction of multi-tie panels by banks following depolarisation.

Strauss said: “On the margin, polarisation will have a large impact because we are seeing some of the mainstream networks under a fair amount of pressure to make a profit. The banks will probably take some share back at the margin because their offering for the consumer perspective will look better than it does today.”

Round table attendees

FSA managing director David Kenmir

FSA press officer Louise Buckley

Advisory & Brokerage Services compliance David Cant

Central Financial Planning director John Eburne

Central Financial Planning director Ian Smith

Chadney Bulgin partner David Thomas

Direct Life & Pensions sales and marketing director Richard Verdin Hornbuckle Mitchell Group director Viv Belcher

John Scott & Partners chief executive Toby Strauss

Master Adviser director Doug Brodie


Aifa&#39s view

I would like to start with some comments on VAT. I once went on a course where I was told this is the most off-putting start conceivable to a speech or article. But since Money Marketing&#39s recent revelations, the most unlikely people have been talking to me about VAT. Will VAT be a new cost […]

FSA may re-open endowments claims

Reynolds Porter Chamberlain has warned the FSA could attempt to re-open mortgage endowment misselling claims which are currently time barred on the back of the Treasury Select Committee&#39s report into the matter. The law firm predicts an increase in the volume of misselling claims would be “almost inevitable” as a result.

Going overboard

Before to the launch of Safe Home Income Plans in 1991, the waters in the equity-release market had become decidedly choppy. But this non-profit-making body for product providers, whose 18 members account for over 90 per cent of equity-release business, has played a vital role in restoring confidence in a product that had become synonymous […]

Mortgages Direct deploys Competent Advisor online

Mortgages Direct is to deploy the Competent Advisor training & competence solution throughout its financial services arm as part of its preparation for mortgage and general insurance regulation. The broker says it has chosen the online solution because it addresses the requirements of the MCCB and FSA Fitness and Competence regimes for ongoing mentoring of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment