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Aifa claims CP121 proposals could stifle innovation

Aifa says the FSA&#39s proposed reform of polarisation will create competitive distortions which will fatally weaken the competitive stimulus of the market.

Aifa says the existence of a strong, competitive, independent distribution arm enables new providers offering innovative products to enter the market without the cost of controlling their own distribution.

Without independent distribution, entering the market would be much more difficult, particularly if the costs of acquiring distribution rose, argues Aifa.

It says many product innovations over the past decade have originated from pressure brought to bear on providers by IFAs.

In its submission to the FSA, Aifa says it is “broadly supportive” of the intention to allow providers to invest in IFA firms. It argues a lack of capital has hampered the growth of many firms and believes a growing IFA sector is good for consumers as it remains an extremely cheap route for the distribution of financial products.

Aifa says it supports IFA firms which are contemplating adopting more than one status under the proposed new arrangements although it says it cannot see how individual advisers can hold dual status. Aifa says this would confuse consumers and undermine the integrity of the adviser.

It is calling for a clear distinction between distributor firms which are contractually linked to a limited number of providers and those which recommend products from the whole market, rather than the current suggestion of auth-orised financial advisers.


Zurich chooses new chief exec officer

Zurich Financial Services Group has appointed James Schiro as its new chief executive officer replacing former chairman and chief exec Rolf Hüppi. Chiro will take up the post on May 17 and is currently chief operating officer group finance. He is an American and was previously chief executive officer at PricewaterhouseCoopers. At the same time […]

Norwich Union – Mortgage Payment Protection Insurance

Tuesday, 14 May 2002 Type: Accident, sickness and unemployment cover Maximum benefit: £2,500 a month single applicants, £3,000 a month joint applicants Benefit payment term: 12, 18, 24 months Deferred period: 30, 60, 90 days Premium: Subject to underwriting Commission: None Tel: 0800 0687926

Lower tier of advice &#39could harm clients&#39

The defined-payment system is an unnecessary intervention in the market, according to specialist ethical investment IFA, the Global and Ethical Investment Advice Partnership, in its response to the FSA&#39s CP121 paper.The Gaeia Partnership has questioned why the FSA has failed to publish any research into the difference, if any, between the types of products and […]

Threadneedle appoints new sales manager for South East

Threadneedle Investments is appointing William Smith as sales manager of its southeast team.Smith will take over responsibility for a panel of discretionary asset managers and will report to regional sales director John Campbell.Smith was previously regional sales manager for Govett Investment Management where he worked since 1990.Smith says: “I know from the marketplace how well […]

Help, I’ve been appointed as a trustee. What are my responsibilities?

Graeme Robb, Technical Manager at Prudential looks at the key duties and responsibilities of a trustee.  This article will consider the following: Duties to be performed on appointment Investment duties Protecting the interests of beneficiaries Keeping accounts and records Distributing property to beneficiaries Duties to be performed on appointment Obtain a copy of the trust […]


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