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&#39Multi-ties could double profit margins&#39

Bankhall says multi-tying could more than double advisers&#39 operating margins.

Speaking at Money Marketing Live on Tuesday in a debate on depolarisation, Bankhall group sales director Shaun Godfrey said: “If you look at the operating margin of most IFAs which is around 10 per cent, with the cost savings that multi-tie will bring through technology and PI they should be able to get the margin up to 22-23 per cent. This is not, however, a reason to go into multi-tie.”

He added the change involved in moving to multi-tie and making a big profit would take around five years.

True Financial Planning managing director John Baxter said the vast majority of IFAs will not have the scale to command multi-tie deals. Tenet director Geoffrey Clarkson said running a profitable multi-tie depends on the type of business rather than its size, with transactional businesses lending themselves more to the multi-tie model.

Sesame commercial director Martin Davis said businesses with high percentages of transactional-type business have the opportunity to reduce their costs massively and increase productivity and profitability through multi-tying.


Lighthouse is brighter after &#39murderous year&#39

Interim results from Lighthouse Group show how mor-ale was tested by a “murderous” business climate and a legal wrangle with nine advisers. The firm&#39s turnover rose although losses have gone up in what group chairman David Hickey describes as “one of the worst years ever for IFAs”. The firm was embroiled in a legal battle […]

NU axes jobs in move to India

Norwich Union is to outsource 7,000 jobs to India by 2007 in a move that will see life and pension policyholders&#39 queries put through to overseas centres. NU says the move will cut admin costs by around 40 per cent and will allow it to respond to customer demand for direct contact with call-centre staff […]

&#39Backache and depression losing 175 million working days a year&#39

Research from Unum Prov-ident shows that almost 175 million working days are lost each year because of the three most common ailments – backache, depression and fatigue. The firm says 21 per cent of people say they have taken time off due to these complaints in the last five years. Unum says this adds up […]

Exclusive Connections – Mortgage Express 1.16% Three Year Discount

Type: Discounted-rate mortgage Discounted term: Three yearsDiscount: 1.16% Payable rate: 5.59% Minimum loan: £60,000 Maximum loan: Up to 90% of valuation subject to a maximum of £250,000, up to 80% of valuation subject to a maximum of £300,000, up to 70% of valuation subject to a maximum of £500,000, up to 60% of valuation subject […]

US equity income: the standout market

By James Hackman, head of US Equities at Neptune With a growing dividend market, very low payout ratios and high dividend cover, the US is one of the standout equity income markets globally. It is also one of the most unloved. James Hackman, manager of the top-performing Neptune US Income Fund, highlights six key facts […]


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