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Broker Talkback

Do you support Prudential’s crackdown on churners?

Yes: 43%
No: 57%

Yes “Churning is naughty to say the least. It is not something that we get involved in. The problem, though, is that it is difficult to define what churning is.”
Gordon Colvan, JB Colvan & Partners

No “But it depends on the reason for the churn. The vast majority is done in the client’s interests and IFAs have a duty of care to their clients to do this. You will get the odd rogue who is doing it for the commission.”
Derek McAllister, IPP Financial Services

No “I wouldn’t support it. They would not necessarily know if the IFA is giving advice or not. We have enough watchdogs in the industry without having to worry about providers as well.”
Andrew Mackie, M R Financial Services

No “I think it is unhelpful as it paints parts of the industry in the wrong light. Every case must be judged in its own right.
Roger Parkes, Ovenden Parkes

Yes “As long as Prudential is properly defining what constitutes this type of behaviour and does not look to clamp down on those serving their clients well.”
John Rowe, JE Rowe Financial Services

Yes “I would support that. I wouldn’t know what other people get up to so I don’t know how big a problem this is but I think they are right to clamp down on this if they see it as a problem.”
Nigel Reeves, Reeves Independent

No “If what they are talking about is IFAs being unscrupulous, then clearly, anything unscrupulous needs to be frowned upon. However, if IFAs are churning a Pru policy because it is in the best interests of their clients, then the IFA has to record his reasons for doing that.”
Peter Flaherty, Wilde’s Financial Consulting

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