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‘Bank crisis shows virtues of IFA model’

The Northern Rock and Societe Generale debacles are further evidence that it is the bank business model and not the IFA model that is bust, says Sesame.

Speaking at a Money Marketing RDR round table, Sesame chief executive Ivan Martin said the wrong model is being accused of being broken. He said the Government must see the IFA sector as part of the solution rather than the cause of the savings crisis.

Martin said: “When the retail distribution review discussion paper first came out and you looked at it just on its merits, here we had a review of retail distribution which looked to be a disproportionate attack on the role of the professional adviser.

“The key lobbyists – my hobby-horse again, the banks – seemed to have a dispro-portionate effect on the content of the discussion paper.

“Looking in hindsight now at whether or not the model is broken and recent events at Northern Rock and SocGen, I would say there is a proportionality issue about the way the paper was structured.”

Martin said presenting advice as part of the solution to the country’s debt problems will be the only way to draw a significant numberof new people into the prof-ession. He said: “I just wish the FSA, the Government and the Treasury particularly would start looking at the advice community as being part of the solution as opposed to starting off being a part of the problem.

“We need to create an environment where the advice profession is seen with trust and confidence because, if we do not, the profession will die ultimately.”


Skandia profits rise 29%

Skandia UK and Offshore has announced net client cash flows of £3.9bn for 2007 and an increase in profit of 29 per cent to £173m. It says its strategy of designing products and financial solutions solely for distribution via financial advisers is key to this success.Skandia UK’s gross sales during 2007 were £8.6bn with funds […]

65 Jobs go under axe at Platform

Platform has confirmed it will be making a fifth of its workforce redundant as it moves to restructure its business as a result of the credit squeeze.The lender says it will cut up to 65 jobs, predominantly in sales and marketing, from its workforce of 305.It will restructure its sales team to give better support […]

S&N takeover may force CGT hit on investors

Investors in Scottish & Newcastle may receive an unsolicited capital gains tax bill even though they will not have sold any shares, warns Brewin Dolphin. S&N is currently the subject of a takeover bid by Dutch firms Carlsberg and Heineken, who have made a cash offer for the company. Brewin Dolphin says if the offer […]


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