IFA firms will burn their bridges with professional businesses if they opt to become multi-ties, a network boss has warned.
SimplyBiz managing director Ian Thorneycroft told IFAs at the Sway conference in Monaco last week that they would lose partnerships and deals with lawyers, accountants and other professional trades if they become multi-tied.
When depolarisation begins next year, advisers will have the choice of being independent with a fee option, operating as a tied or multi-tied agent of offering whole of market.
However, Thorneycroft says becoming multi-tied would mean that professional companies would not want to refer business since the clients would not get independent advice.
He warned firms that there was little or no point in marketing themselves as a brand since what would become important to firms was the way that they delivered products and served their clients.
Thorneycroft says: “It is all about building on what you do and how you deliver it.That is why the small IFA has one of the strongest brands about. If you choose to become multi-tied you will not be able to keep those professional connections that you have got at the moment.This will reduce what is coming into the business.
“What is good for consumers is competition among firms and having multi ties takes away from this. I just do not believe the rhetoric that multi-ties will improve things.”