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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


FSA tells providers to monitor the quality of advice

The FSA has called for product providers to take more responsibility for the quality of distribution and monitor the quality of advice provided by advisers. Speaking at the FSA’s annual asset management conference, chief executive John Tiner said although providers need not necessarily proactively monitor individual distributor behaviour, they should analyse what aggregate statistics say […]

Rise to the challenge

The sound of a gauntlet hitting the floor reverberated across the financial services industry earlier this month. Sir Callum McCarthy’s speech at the Gleneagles Savings & Pensions Industry Leaders’ Summit was a challenge to the industry to address fundamental questions. Callum surfaced some contentious issues that we have all deliberated upon from our own perspective. […]

Bestinvest see profits up 71 per cent

Bestinvest brokers latest results has revealed a 71 per cent increase in pre-tax profits to over 6m.The statement for the year to May 31 2006 also shows an annual increase in earnings per share to 58 per cent and a turnover increase of 59 per cent.Bestinvest chief executive John Spiers says: “This was the first […]

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