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Broker Talkback

Is FSA chairman Callum McCarthy right to say that the current life and pension distribution model is broken?

Yes 25%
No 75%

No “I think the current system is OK. I personally don’t move any of my clients between pension products because of commission levels.”

Joseph Holmes, Teal Financial Services

Yes “I think everyone has to move to fees. There are a lot of responsible IFAs but many are moving their clients around needlessly. It’s appalling.”

Keith Emery, R S T Financial Consultancy

No “Consumers are getting a very good deal on single-charge pensions and IFAs are clearly benefiting from churning – that is why they do it.”

Boyan Tsonchev, Premium Independent Financial Management

No “The FSA would be happy when there are no advisers left and they tend to forget that without advisers they would have no income.”

Richard Hampshire, Hampshire Hill Group

Yes “He is largely correct. I charge fees and it is inevitable that the market will eventually become 100 per cent fees but there will be a huge fallout of advisers.”

David Ralph Lewis, Lewis Cox Partnership

No “It depends who is selling the products. I have never had a complaint.”

Ronald Morton, W G Hall

No “I do not think there is anything wrong with the model, I think there is something wrong with people that sit in their ivory towers criticising it. Where on earth are people supposed to get decent financial advice from unless they go to an IFA?”

Dennis Copping, A J Life

No “It goes back to whether we are a product sales or an advice-led industry. All the language from the regulator is about selling and misselling, rather than advising yet we as IFAs are referred to as advisers. Until that gets sorted out, everything else is immaterial.”

Ali Bhatia, B-Financial

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