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93% of IFAs say Stakeholder-type plans fail

More than 90 per cent of IFAs believe the stakeholder-type products advocated by Sandler will fail to sell, according to the first survey on the long-awaited report.
The Money Marketing survey, which sought the views of over 400 RIs at the national Positive Solutions forum in Manchester this week, found that 93 per cent of IFAs believe low-charge products in the stakeholder stable would not appeal to clients.
On Sandler&#39s intention to level the playing field between life, pension, unit and investment trust products IFAs were almost as dismissive, with 79 per cent of attendees saying they doubted whether it would be a good move for the industry.
But many IFAs welcome his payment proposals, with 78 per cent saying the plans would make the independent sector more likely to flourish, compared to just 13 per cent who think it would be fall into decline. While nine per cent were unsure.
IFAs are more divided over Sandler&#39s view that they lack investment knowledge, however, with 63 per cent agreeing to the charge, compared to 37 per cent who disagree.
IFAs are resoundingly certain about the need for a more accurate definition of misselling, with 98 per cent saying it would be a step forward and only 2 per cent believing there is no need.
Chief executive David Harrison says: “People always worry about change but the fact is that it always brings opportunities. Agile companies can gain a competitive advantage in such times.”

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