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AITC attacks discount &#39madness&#39

AITC director general Daniel Godfrey has attacked discount broking as “madness” as part of the association&#39s response to the Sandler review.

Godfrey is questioning whether the framework which allows IFAs to sell funds on an execution-only basis and rebate commission is fair.

He points out that consumers cannot get the same prices by going direct to the provider.

He says: “It is madness. Just for being an IFA, but not giving advice, means you can sell at a big discount.”

The AITC response to the Sandler review is recommending that product providers which sell products direct to the public should be obliged to sell them at the same price they provide them to intermediaries, net of all initial and renewal commission.

Torquil Clark managing director Don Clark says: “Discount brokers account for about 40 per cent of the Oeics and unit trusts sold. Godfrey&#39s proposals would put investment trusts on an even footing but at the expense of fewer investment products overall being sold because they do not offer commission. If you took away the commission, discount brokers would cease to trade.


Leeds & Holbeck – 100 Per Cent Fixed Rate

Friday, 5 October 2001.Fixed term: Until February 1, 2005.Fixed rate: 6.5 per cent.Minimum loan: £25,000.Maximum loan: Up to 100 per cent of valuation subject to a maximum of £150,000.Income multiples: Three times principal income plus second or 2.25 times joint.Arrangement fee: None,Redemption fee: Six months&#39 interest during fixed term.Conditions: Compulsory buildings and contents insurance, £250 […]

Unwanted Friends

Laurie Dean&#39s client (Money Marketing, September 20) is certainly not alone in being subjected to a plague of invitations to Friends Provident IHT planning (that is, buy a bond) seminars.I have just received the latest of many. Every time this happens, I call them and suggest that reneging on their no cross-selling vows to the […]

US Federal Reserve cuts rates to 2.5 per cent

The US Federal Reserve cut rates by 0.5 per cent to 2.5 per cent yesterday evening, their ninth cut in rates this year.Many investment experts believe rates could go even lower in the short term, possibly down to 2 per cent.

House prices surge in September

House prices in the UK rose by 2.8 per cent, the highest monthly increase for eight years in September, according to figures published by Nationwide.The Nationwide figures show that the average price of home in the UK has increased 14.6 per cent since September 2000 to £92,432.

Three catalysts for European equities

By Rob Burnett, Manager of the Neptune European Opportunities Fund In recent weeks, the bear case for European equities has become more pronounced on the back of weaker-than-expected GDP data and deflation concerns. This softening in economic momentum has led some investors to question whether the ECB is behind the curve and indeed whether it […]


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