View more on these topics

ABI research reveals red tape halving sales time

Potential sales per week for IFAs have dropped by nearly half between 1995 and 2000, according to ABI-commissioned Oliver Wyman & Company research.

The research, which is instrumental in shaping the ABI&#39s stance on polarisation reform, shows potential sales per week have dropped by nearly half to six a week in 2000 from 10 a week in 1995.

Sales time per client has increased to six hours in 2000 from 3.5 hours in 1995. Over the same period, charges to consumers have fallen by 35 per cent.

The research shows annual charges for IFAs went up by 23 per cent between 1995 and 2000 while there was a 70 per cent increase in the time spent per customer in the documentation of the advice process.

Wyman says this has been by far the most significant contributor to the increase in the case size required for an adviser to break even, which is estimated at either a £70 a month regular premium or a lump sum investment of £8,500.

The report also identifies the 1 per cent price cap on stakeholder as a factor that could significantly reduce the number of competing suppliers of these products.

As part of the proposals for a tiered regulatory regime, the research suggests that the price cap for stakeholder and Catmarked Isas should be eased to 1.5 per cent.

Klonowski & Co principal Francis Klonowski says: “Higher volumes with fewer clients is the way that IFAs should be going in order to remain profitable.

“Dealing with lower-earners is the area where you are most likely to encounter persistency problems.”

Recommended

Pinnacle Insurance – The Medex Senior Plan

Thursday, November 1, 2001.Type: Healthcare cash plan.Minimum premium: £1.50 a week.Minimum-maximum ages: 18-79.Maximum benefits: £690 a year.Deferred period: Six months.Commission: None.Tel: 020 8731 3625.

Consumers&#39 Association says FSA fails orphan test

The Consumers&#39 Association has criticised the FSA over its proposals for inherited estates, saying they fail to address who owns the funds or what they are worth.The proposals, which are part of the FSA&#39s with-profits review, set out how life offices should handle the process of attributing and distributing inherited estates.The FSA&#39s consultation paper outlines […]

Octopus tentacles out to bio VCT

Brewin Dolphin Securities has linked up with Octopus Asset Management for the introduction of the bioscience venture capital trust (VCT). This VCT invests in a portfolio of between 25 and 30 companies within the biotechnology sector. The portfolio will be made up of quoted companies in the UK and overseas, companies listed on Aim and […]

Pink Home Loans – The Chameleon Mortgage 75 Per Cent

Thursday, November 1, 2001.Type: Tracker mortgage.Tracker term: Term of loan.Tracker rate: Bank of England base rate plus 3.75 per cent.Minimum loan: £25,001.Maximum loan: Up to 75 per cent of loan subject to a maximum of£1m.Income multiples: 3.5 times principal income plus second or threetimes joint.Arrangement fee: £395.Redemption fee: 6 per cent of amount repaid in […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com