View more on these topics

Bank denounces depolarisation as providers go on the attack

The FSA proposals for depolarisation are coming under attack from some of the biggest providers once tipped to benefit most from the new regime.

In its response to CP121, Lloyds TSB criticises the proposals, saying they will lead to consolidation into a few stronger brands, decreased competition and customer detriment.

It says: “We see the distinction between IFAs and AFAs as a key area for customer confusion. The move away from widespread availability of independent advice that would be likely to follow implementation of these proposals is not obviously beneficial to consumers.”

It also warns that depolarisation could lead to hig-her commission levels and an expensive scramble for distribution, with the costs passed on to consumers.

The Abbey National Group and Standard Life responses criticise the defined-payment system while broadly supporting depolarisation. Standard Life says the DPS will force IFAs to move from independence and add an expense equivalent to 0.3 per cent in reductions in yield on pension contracts.

Scottish Equitable has conducted research which shows that only a fifth of IFAs will stay independent and it proposes an alternative to the defined-payment system.

Axa and Zurich have declined to make their resp-onses public.

Aifa director general Paul Smee says: “It is interesting that criticism of the proposals does not just come from IFAs but from much wider. This should cause the FSA to do some fairly profound rethinking of the way they want the market to change.”


Utopia Inns back for more

Utopia Inns is offering a second share subscription in its enterprise investment scheme (EIS). This EIS aims to provide capital growth by developing pubs initially around the M5 area between Birmingham and Bristol and the M25 area towards London.The first share offering in August 2001 raised £750,000, which was used to develop a champagne piano […]

New IFA sales manager for Jupiter

Jupiter has appointed Simon Hynes as nationals and networks sales manager, a role created as part of its IFA support team expansion plans. Hynes joins from Foreign & Colonial, where he was regional sales manager responsible for new business development through intermediaries in the South-east. The move follows Jupiter&#39s appointment of two broker liason executives […]

Scottish Widows goes for strategy

Considering the investment strategy, Moseley says: “Very limited investment options. The investment strategy seems okay.” Stather points out that investment grade bonds are now highly priced. He feels that prices might not fall, but such bonds unlikely to provide capital growth. He adds that there will be more opportunity for capital growth with high yield […]

Charter IT retains £80m in assets

Dresdner RCM Global Investors&#39 Charter European Investment trust has retained £80m of assets at its relaunch following a defeated hostile bid from Henderson. The trust, now restructured as the Charter Pan-European trust, lost most of its institutional investors after the Henderson bid but managed to hold on to around half of its private investors. It […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment