View more on these topics

Axed menu is evidence of failure of depolarisation

SimplyBiz says the FSA’s decision to end the payment menu and initial disclosure document is further proof that depolarisation has been a failure.

Managing director Ian Thorneycroft says few advisers will rue the demise of the documents and consumers seldom read them, with many finding them confusing.

He says: “Menus were brought in as part of depolarisation, which in itself has not been successful. Despite every effort, the fact is that clients find the menus confusing and unhelpful, particularly the commission table.”

Tenet group distribution and development director and Keith Richards says the timing of the move surprised him. He says: “This is not unexpected but it is sooner than we had anticipated. It is a safe harbour to continue using it but we will consider our position and the most appropriate way forward.”

Anand Associates managing director Bhupinder Anand says: “I am pleased because I think it was a complete waste of time and actually hindered the relationship with clients in the sales process rather than helped it.”

However, ThorneycrOft believes that the payment menu did have one positive effect by making advisers identify the value of the advice they give.

He says: “It has forced IFAs to think about what it costs them to give advice. We have seen a significant increase from 5 per cent who were charging fees or recurring income three years ago to 18 per cent now.”

IFA Promotion chief executive David Elms says: “We are concerned about what will replace the menu and initial disclosure document. Both provided a level playing field between different advice channels and made it clear to consumers that one way or the other, advice costs money.

“This inevitably encouraged more advisers to explain the value of their service better and led more consumers to pay for advice by offsetting fees with commission.”


Hidden agenda in review

You make up your mind, then you kid everyone with a consultation paper or a review. Whatever the results, it matters not because the decision has already been taken. All they want is to pretend otherwise.

British Insurance launches new PPI policy

British Insurance has launched a new payment protection insurance product which is more than £30 a month cheaper than the average high street PPI policy.If a 30 year old couple took out a £7500 loan over five years with monthly repayments of £147.33 insurance over the life of the loan would cost £3591 from Bank […]

Chesterton Global re-enters valuation market

Estate agency Chesterton Global has re-entered the valuation market with its purchase of Moss Kaye Pemberton.Moss Kaye Pemberton is currently a wholly owned subsidiary of the Solitaire Group. It is a long standing firm of chartered surveyors and property consultants based in Swiss Cottage.Chesterton chief executive Robert Bartlett says: “We have been looking for the […]


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