Bankhall says there is no benefit in joining a network because they offer advisers no protection from liabilities arising from complaints against them.The firm says it is concerned that many advisers believe joining a network protects appointed representatives from regulatory and financial liability in case of complaints. Marketing director Richard Howells says: “What is the benefit of joining a network if the financial liability is passed back to the individual adviser? People join networks for protection against that liability. The network principal gets a slap on the wrist from the regulator but, in terms of cost, it falls to the individual.” But both Falcon and Burns-Anderson say networks do add value by mitigating business risk which reduces the likelihood of complaints. Falcon chief executive Allan Rosengren says: “Of the 15- odd networks out there, some are more hands-on than others. Their role is to add ano- ther layer of protection by risk-managing every piece of business. Although the network is ultimately responsible for the action of its ARs, within a contract, if there is the need for a settlement, it would be settled by the individual, not the network.” Burns-Anderson head of marketing Adrian Lewis says: “We do have clauses written into individual member contracts and they are ultimately responsible for the advice they give. However, we pride ourselves on the guidance that we give to avoid complaints coming back to our advisers in the first place.”
Fidelity has suffered significant outflows from Anthony Bolton’s special situations fund ahead of its split next month and advisers say redemptions are only likely to increase. Data from Lipper reveals that the fund has shrunk by 500m to just under 6bn since details of the fund’s split were unveiled in June. Special sits is now […]
A lot of advisers probably think that the Government has been talking out of its Asp in recent weeks.
Insight Investment is bucking the industry trend by converting its diversified target return fund from a non-Ucits retail scheme structure to Ucits III next month. Most multi-managers have been converting their funds from Ucits III to Nurs to access the greater investment flexibility that enables. But Insight says Nurs funds require life insurance companies to […]
Imagine you were an IFA firm operating under FSA regulation. Imagine that in the past the firm had been several firms operating under several different regimes. A reasonable merger had taken place although for a few years the firms existed as a sort of ad hoc alliance before a full merger.
Loomis Sayles senior global economist James Balfour looks at the three main macro themes evident during October: a world lacking in demand; the strength of global market performance; and the required exit from profits recession. Click here
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Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]
Fund managers like to trade off having a unique style. There thousands of funds out there to choose from – the question I often hear from advisers is: what makes this person different? Sometimes this can be a really tough one to answer. “We invest for the long term” is all fine and good, but […]
With rising costs and an increasingly tough regulatory market more advisers are looking to outsource their investment proposition, with many leaning towards discretionary fund managers. But while the number of advisers using DFMs is on the up, overall satisfaction with them has dipped. According to a recent survey by financial information firm Defaqto, 74 per […]