Only IFAs who are “gliding toward retirement” will opt to go multi-tied as they look for a comfortable last few years of their working lives, says Tenet director Geoffrey Clarkson.
Participating in a panel discussion on the likely impact of depolarisation on the IFA market, Clarkson played down the impact of multi-ties and claimed that most IFAs will choose to remain independent.
He said while Tenet will offer members the choice to go multi-tied, it will strongly urge them to continue as IFAs.
Towry Law director of strategy Charles Levett-Scrivener claimed many banks will go multi-tied, not because they think it is in customers' best interests but because it will be commercially attractive.
True Financial Planning managing director John Baxter said multi-tied firms will only be attractive to the “younger, poorer” end of the market while “older, wealthier” investors will still seek out independent advice.
Clarkson said: “I do not think the multi-tie option will benefit consumers, it will only benefit the product provider who wants to control distribution. There will be some spurious multi-ties which may look absolutely brilliant until you start reading the small print.”
Baxter said: “I think the multi-tie will dominate the mass market. It will be advisers who buy into the 'pile them high and sell them fast' mentality which decide to become multi-tied.”