View more on these topics

Adequacy change will force out Small IFAs

It is unfortunate that the FSA takes a view that the small IFA does not provide good advice, sells all policies on commission and does not offer fee-based advice.

I have been in this industry since 1983 and have a substantial number of satisfied and wealthy clients. Some pay fees and some do not.

Many clients are happy with commission/ factory gate pricing and this route is often the only route they can secure a comp-etitive product as they do not have sufficient savings to pay fees.

The FSA has already decided that because the small IFA creates a difficult monitoring problem the answer is to increase capital adequacy to, say, £50,000.

All this will do is force the small IFA out of business and the net result is less financial advice being provided. The FSA would force many professional IFAs out of business.

Only 12 per cent of complaints come from the FSA sector yet over 65 per cent of product is sold through this channel. Less than 25 per cent of the complaints are upheld.

The current model is “not broken” and works very well. The regime of professional qualific-ations promotes the expertise of the adviser.

These qualifications perhaps should be discussed with client at meetings rather than how much they earn from a particular product if sold.

Ken Bannister
IFA

Recommended

Bring back the MCA to silence the critics

Having been actively arranging business in this wonderful profession of ours continuously since 1969 and having been one of the founding fathers of the Life Insurance Association, I could weep when I see the vested interests shovelling propaganda out almost on a daily basis about the sins of commission, What sins? If I spend many […]

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