View more on these topics

Aifa in fee hike warning as it proposes admitting multi-ties

Aifa has warned members unwilling to accept multi-tied members to be prepared to pay a 25-30 per cent hike in subscriptions to keep it afloat without them.

The trade body has launched a consultation paper seeking feedback from members to help determine its profile and size post-depolarisation.

Members have to decide whether they want a purely independent trade association under the strict definitions set by depolarisation, thereby rejecting all whole-of-market, multi-tied and hybrid firms with a combination of arms.

Alternatively, members can opt to accept multi-ties, whole-of-market advisers which do not charge fees or firms which offer both independent and whole-of-market services.

The possibility of expanding the Aifa membership to include multi-tied advisers met vocal resistance from some IFAs when initially raised by director general Chris Cummings last month.

But Cummings says maintaining membership exclusively for independent advisers would prompt a drop in membership, putting the trade body in a financially difficult position and lumbering remaining members with a 25 to 35 per cent subscription hike.

He says any reduction in membership could also reduce Aifa’s influence.

One Aifa proposal would see the trade body admit firms with an “independent core” but which may have a whole-of-market or multi-tied division. Aifa says this would build on its independent credentials while recognising changes in the market.

The consultation paper says: “This option enables us to continue to attract members but restrict our coverage to firms with independence at their heart.”

The results will be announced at the Aifa council in September or earlier if appropriate.

Plan Invest Group joint managing director Michael Owen, an Aifa member, says: “Multi-tieds have different problems to IFAs and I am worried our representation could be wat-ered down and there could be a divergence of interests. But if fees are going to go up, then commercially we would have to consider letting them in.”

Aifa membership options

  • Option 1: Maintain membership for purely independent IFAs
  • Option 2: Admit independent and whole-of-market firms (advisers which do not offer a fee option and cannot call themselves IFAs under depolarisation)
  • Option 3: Admit those with commitment to independent advice but with whole-of-market and/or multi-tied divisions
  • Option 4: Admit exclusively whole-of-market firms with no independent wing
  • Option 5: Admit firms with hybrid model or combination of divisions, for example, whole-of-market, multi-tied, independent, but no need for independent arm
  • Option 6: Admit firms with only a multi-tied offering
  • Option 7: Create different membership categories for firms which do not meet independent definition.
  • Option 8: Any other options recommended by members


Wartime spirit kept markets stable amid London atrocities

At a recent family occasion, two cousins, one from the US and one from the UK, were discussing Al-Qaeda. The one from the US, who lives in a Californian town too obscure to be a likely target for terrorists but who flies frequently on business, said: “Everyone’s afraid.”

IFA Jobs View: Word of mouth speaks volumes

Julian Telling, managing director, Falcon GroupRecruitment requirements for a medium-sized business such as Falcon generally fall into three main categories, namely advisers, paraplanners and compliance staff. There are, of course, a few head-office appointments which I will deal with later. Being based in Bristol is not without its advantages. The city has a long reputation […]

Structural improvements

out all the answers without such a new tool. But it is intriguing to note that it is only now, 20 years or more after with-profits really took off, that anyone is bothering to create something that will make it easier to give good advice in this area.

Jacobs brands deferred Sipps as marketing ploys

The best deferred Sipp is a stakeholder pension and the current spate of deferred Sipp launches are just marketing ploys, says pension specialist Richard Jacobs. Jacobs, director of Richard Jacobs Pension & Trustee Services, says Standard Life and Legal & General’s forthcoming individual deferred Sipp laun-ches offer little more than stakeholder for the majority of […]

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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