View more on these topics

Advisers need to pay for an effective trade body

In response to last week’s column by Nic Cicutti on Stephen Gay’s departure from Aifa.

Nic, it is pretty straightforward. IFAs need to decide if they want an effective trade body. If they do, they will have to put their hand in their pocket and pay for it.

Currently, 50 per cent of Aifa’s income comes from life offices, which is quite ironic when many IFAs want to demonstrate their “independence”.

The other half, which is way short of what it needs to be sustainable, is mainly from network fees who have negotiated fees from their own trade body that are a fraction of the going rate, for example, about £65 versus £365.

I had discussions with Steve Gay about how funding could be made more sustainable. I was quite prepared to give more financial support in the short term in return for fees being reformed and IFAs taking more responsibility for its financial affairs. I suspect Steve was not able to persuade the board to put their own vested interests aside.

David Barral
Chief executive officer, Aviva UK Life


British MEPs await vote on future at top of Econ committee

Sharon Bowles will find out later today if she is to remain as chair of the European parliament’s economic and monetary affairs committee. Bowles admits there has been attempts to “shake her out of her tree” after the UK was the only country which refused to back the creation of a European fiscal pact. But, […]

UK dividend pay-outs hit record in 2011

Dividend payments in the UK hit £67.8 billion during 2011 and are expected to rise 11 per cent to £75 billion in 2012, according to Capita Registrars. Research also revealed that the number of companies increasing payments outstripped dividend cutters by four to one. The rise in UK dividend payments during 2011 was the first […]

IMA launches 0-35% mixed investment sector

The Investment Management Association has launched the mixed investment 0-35 per cent shares sector, after it was delayed earlier this year due to lack of demand. The sector had originally been planned for launch alongside the other multi-asset sectors at the start of the year, but low demand resulted in a delay. The IMA has […]

Partied out and penniless

December has left me destitute. My piggy bank lies broken and empty, my lunchtime meal deal feels like an extravagant expense and I’m down to the Bountys in my box of Celebrations. But I won’t mourn my dearly departed pennies. Between buying gifts for loved ones (then deciding to keep them for myself) to treating […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. You tell ’em David.

  2. It is reassuring to see a leading industry figure who has a good grasp of the situation and can clearly identify where the problem lies.

    If only we knew how to fix it!

  3. David:

    Your trade association, the ABI, deliberately worked with New Labour to undermine the IFAs perfectly solvent and well resourced Trade Assocation IFAA. You invested over £300k to invent an association to compromise your distributors’ voice

    You and other providers have benefited from the removal of polarisation. You are about to get the vast majority of middle income consumers for your direct marketing sales and you have neutered the independent sector who quite correctly refuse to support an association who can only use the tactics dictated by the ABI.

    The problem is that AIFA is essentially run by providers and networks who both refuse to fund properly and make little to no profit so will no last in the long term. They are going to make AIFA’s decisions – for whom?

    The smaller independent IFAs wont have anything to do with it as it refuses to fight for them.

    It is a mess. We will see 20 -40% of capacity leaving the independent sector in December with more leaving when they dscover their clients won’t pay fees.

    What is left isnt big enough to run an association!

    Still the consumer can depend on Insurance companies to treat their clients fairly by selling ther details to ambulance chasers – upping the cost of insurance for all.

    Gee thanks


Leave a comment