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Broker ban in multi-tie start

IFAs, franchisees and tied agents will be excluded from setting up shop as multi-ties in the first phase of the FSA&#39s polarisation reform.

The regulator does not envisage brokers becoming multi-tied in their own right for selling stakeholder pensions and Cat-standard Isas in a paper issued last week.

Money Marketing revealed last December that franchi sees were likely to be excluded.

Direct providers will be able to link with any number of others but the FSA believes market forces will not encourage more than a few alternative products in a range.

The Treasury had announ ced multi-ties in documents accompanying the pre-Budget report, fuelling speculation that the IFA networks could convert.

FSA director of investment business (policy) David Severn says: “It will be the obligation of providers to ensure its salesforce can sell its products. We expect the number of products imported to be relatively few.”

But Aifa and Sofa have concerns over how direct salespeople will determine which of the stakeholder products in a provider&#39s range is best for the client.

The LIA questions how providers will strike deals with other companies, claiming this may not depend on suitability but on commercial factors.

Aifa director general Paul Smee says: “Direct providers are trained to sell their prov iders&#39 products. Logic would have it that they would tend to favour their own company&#39s products. The question must be asked, are these guys sufficiently competent to do what they will be doing?” As expected, the FSA paper also rem oved direct-offer promotions such as fund supermarkets from the polarisation regime. A comprehensive rev iew of polarisation is scheduled for July.


iShares – iFTSE ExUK

Thursday, 11th January 2001.Type: Exchange traded fund.Aim: Growth by investing in European companies that make up the FTSE ExUK 100 index.Minimum investment: Negotiable with stockbrokers.Maximum investment: No maximum.Investment split: 100 per cent in European companies that make up the FTSE ExUK 100 index.Place of registration: Dublin.Isa link: Yes.Pep transfers: Yes.Charges: Annual 0.5 per cent.Tel: 0845 […]

James Hay sipps the fruits of external funds

Parrott says: “This offers a very good opportunity to revisit existing PPP clients and to attract those who are not getting much from their existing providers. The plan offers full Sipp benefits at equal or even lower cost than most standard insured PPPs. Many insurance companies will need to take this on board. There is […]

Quester bets on UK companies

QUESTER Venture Capital Trust 4 Aim: Growth by investing in a spread of unquoted UK companies. Minimum investment: £3,000. Opening-closing date: November 1, 2000-April 3, 2001 for tax year 2000/2001. Until May 31, 2001 for tax year 2001/2002. Charges: None. Commission: Initial 3 per cent. Tel: 020 722 5472. Mark Spendlove, associate director, Bowland Financial […]

Ethical choice for Holden Meehan

IFA firm Holden Meehan is introducing the UK&#39s first ethical stakeholder friendly group personal pension in conjunction with Friends Provident. This unit-linked pension has been designed to give employees an ethical option before the introduction of stakeholder pension in April 2001. Contributions can be made at any time and the minimum regular contribution is £20. […]

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Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.


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