View more on these topics

Bankhall says only two networks have scale for multi-ties

Bankhall has laid down a challenge to rival networks, claiming that only itself and Sesame have the scale to build a workable multi-tie proposition.

Business development director Peter Mann believes there are very few players apart from Bankhall and Sesame able to build an operable multi-tie, underlining the difference between a true multi-tie, which has support struc- tures and an IT platform, and a distribution aggregator, which is largely based on commission and easier to set up.

Bankhall has spent £9.8m so far on its IT offering, which includes a multi-tie proposition as well as an IFA portal, but it says it expects to spend “significantly in excess” of this amount, with some reports putting the figure as high as £15m.

Mann predicts that by 2008 up to 40 per cent of Bankhall advisers will set up multi-tie channels for certain segments of their clients, such as lower-income consumers, with high-net-worth clients preferring to receive independent advice.

He stresses Bankhall&#39s commitment to independence, saying that only a small proportion will multi-tie their businesses entirely.

Sesame expects most of its members to retain their IFA status after depolarisation.

Bankhall is keen to rent out its multi-tie offering and is in discussions with other firms. It originally predicted that half of its income would come from rental agreements but Mann says that a letter sent out by the FSA last week ended any hopes of up-front payments from product providers to intermediaries and means that even fewer players will be able to afford to build a multi-tie.

He says: “The note clearly states the FSA&#39s intentions with regard to up-front payments. There will be no golden hellos and we respect that. Intermediaries should not be given money by product providers just for multitie purposes but this letter will further detract from the desire of many players to multi-tie.”

•FSA &#39pre-emptive strike&#39 on inducements, p8; Comment, p35


Kevin Duffy on MORTGAGES

Here is the charge sheet. First, the rampant house price inflation afflicting the UK. Sections of the press are intent on talking the market into a crash. Yes, in places, prices are up by 20 per cent on last year but what too few reporters outline is that the pace of month-on-month inflation has slowed […]

1st Software takes stake in iTrak

1st Software has bought a 51 per cent stake in wealth management IFA software firm iTrak which is used by 25 IFA firms, including members of Inter-Alliance and Whitechurch. ITrak&#39s software allows IFAs to separate the cost of the advice process from products, enabling firms to identify and charge up-front and recurring fees for services. […]

Two out of three investors want IFAs to discuss ethical funds

Two investors in three would like to see their money invested in a socially responsible manner according to a MORI poll for Stewardship Growth, an ethical investment fund for private investors. The poll has found 65 per cent of investors want IFAs to start taking the initiative and ask their clients if they wish to […]

McFall names 21 splits&#39 firms

Treasury Select Committee chairman John McFall has named 21 firms he believes are involved in the splits&#39 debacle. Speaking at a committee meeting last week, McFall said he believes it is important any information about the inquiry is put in the public domain and he gave a list of 21 firms he believes are involved. […]


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