View more on these topics

BBB claims VAT bills will see IFAs quit networks

IFAs looking for more protection from VAT bills, escalating regulation and astronomic professional indemnity insurance will jump ship from networks to nationals, says Berkeley Berry Birch.

BBB chief executive (network division) Richard Howells believes the VAT issue could be the last straw for many small IFAs who could find their networks passing on the cost of unforeseen VAT bills and penalties to members.

Assuming that Customs & Excise goes ahead with measures to toughen up on when advisers and their networks pay VAT, Howells believes nationals will have a distinct advantage over networks.

He thinks administering VAT in the future will be easier for nationals, which will be able to implement a one-size-fits-all system faster and more efficiently than networks struggling to tailor changes for hundreds of individual businesses.

Howells believes many of the smaller networks will be unable to cope with VAT and could see an exodus of members if charges increase significantly. Although he believes it will be progressive, he thinks the next few years will see more abandoning their own businesses for easier alternatives that let them remain in the advice field.

But Syndaxi Financial Planning director Robert Reid does not believe a national structure lends itself more easily to administering VAT.

Reid says: “This is a complex area and inevitably nationals will run into just as many problems, particularly with VAT grouping. These could only be avoided if the company was not passing money between corporate entities.”


Free FSA from political pressure to achieve more effective regulation

Several years ago, on a visit to my tailor, he measured me carefully and discussed the sort of style that would be appropriate for my envisaged usage. After a few weeks, the suit was finished and I was delighted with it. However, I wonder today if I was missold? The lapels were four inches wide, […]

Parliamentary summit looks at home packs

Mortgage and property industry representatives were brought together with members of the Houses of Commons and Lords last week in a meeting hosted by the National Association of Estate Agents which looked at the Government&#39s controversial home information packs. The meeting was chaired by Labour peer Lord Corbett and views were heard from the CML, […]

Pru seeking new high-street deal

Prudential is looking to sign another deal with a major high-street bank to boost its distribution post-depolarisation. In an interview with Cantos last week, Prudential chief executive Mark Wood confirmed that the insurer is looking to multi-tie with another bank. The move follows the success of its deals with Abbey in 2002 and more recently […]

Scot Eq pension has it all

Scottish Equitable is targeting high-net-worth clients with the flexible pension plan. This is an individual personal pension with a difference as it has insured and self-invested options supported by a menu-based charging and commission structure. The pension is part of Scottish Equitable&#39s wealth management business proposition, which caters for the needs of professionals, the wealthier […]

Image courtesy of Stuart Miles at

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.


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