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&#39IFAs will meet low-margin challenge&#39

IFAs are upbeat about their future in the low-margin post-stakeholder product environment, according to software provider CMG.

CMG says IFAs believe they can meet the challenge of delivering low-margin products and see them as a good business opportunity.

Ninety-five per cent of respondents to a survey felt initiatives such as stakeholder will give them opportunities to deliver products more cost-effectively than competitors.

But keeping hold of sales staff in the stakeholder world is a big concern, with 64 per cent saying it will be a problem. Sixty-four per cent of advisers say the market suffers from over-regulation.

The survey shows 88 per cent of IFAs view the internet as a business opportunity. IFAs have also given digital sig-natures a thumbs up, believ-ing they will have a positive effect on the promotion of independent advice.

Life and pensions division director Phil Duke says: “It seems that IFAs are finally coming to terms with the challenge laid down by low-margin products. But IFAs cannot afford to relax yet. They must work fast to implement a solution that offers the most cost-effective method of delivering these products.”

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