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&#39Multi-tied IFAs will be marginalised&#39

IFAs that multi-tie in a depolarised world will become marginalised as they will be going head to head with the banks, warns HBOS insurance and inv-estment chief executive Phil Hodkinson.

He told delegates at a polarisation conference in London last week that advisers who stay independent will not be threatened by bancassurers as they are chasing a different market although some IFAs dispute his claims.

Hodkinson criticised CP121, saying the argument over fees •commission was irrelevant and that the real divide would be between intermediaries who gave advice across the whole market and those that did not. He also predicted that providers with big stakes in IFAs would in time move to dilute those stakes.

Hodkinson said: “Multi-tied intermediaries will be marginalised as they will be pitted against banks with huge marketing budgets and built-in distribution systems. The debate around commission •fees was a red herring resulting from misguided prejudices based on poor research. The real issue is are you giving advice across the whole market?”

Millfield Partnership chief executive Paul Tebbutt says: “The banks have too high an opinion of themselves. If you are multi-tied to around seven firms, you can run your operation far more smoothly and still offer goodquality holistic advice.”

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