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&#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

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