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…but IFAs with best advice panels beat the accusations

IFAs using best advice panels are both independent and free from commission bias, according to new research commissioned by the FSA for the polarisation review.

The report by Cap Gemini Ernst & Young last summer exonerates panels from accusations of already being multi-tied, finding selection processes to be robust, subject to regular reviews and uncorrelated with commission levels.

The survey covered 100 IFAs from 21 firms, incorporating panel and non-panel users. It says firms using panels had more structured and identifiable methodologies supporting provider selection.

It said those which did not use panels tended to use less structure and prescription in provider selection but this did not necessarily indicate a flaw in their processes.

In its cost-benefit analysis of changes to polarisation , the FSA confesses that panels may be more effective than multi-ties, with multi-tie less likely to be reviewed as often as panels.

The FSA paper says: “The evidence from the CGEY research indicates that the use of panels can be compatible with independence.”


Poleaxed as FSA opts for massive changes

Over 13 years of polarisation is to be swept away following radical proposals from the FSA to overhaul distribution and advice completely.Multi-ties, or “distributor firms” will be introduced, directly authorised by the FSA they will be responsible for advice given rather than a lead provider which had been widely touted.The better than best rules will […]

Membership of networks set to nosedive, says FSA

Network membership will plummet under FSA depolarisation proposals, with many RIs leaving to become directly authorised multi-tied advisers and remaining IFAs spurning their services, the regulator has claimed.IFAs are also predicting an exodus of network members back to the tied sector if the proposals are implemented.In its consultation paper, the FSA says networks may choose […]

IFAs slam failure to save polarisation

IFAs are slamming the industry for failing to lobby effectively to save polarisation and for not convincing the FSA of the dangers of multities.Wentworth Rose director Philip Rose says: “These proposals will result in a complete free-for-all and redesign of the industry. This shows the total failure of the lobbying campaign to save for polarisation […]

NDF Administration – Higher Income & Growth Plan

Monday, January 14, 2002.Type: Guaranteed equity bond.Aim: Income and growth by investing in blue-chip stocks.Minimum-maximum investment: £7,000-£1m.Term: Five years.Guarantee: Capital returned in full provided none of the stocks aremore than 20 per cent below their initial level.Return: Capital returned in full along with 0.7 per cent a month, 9 percent a year or 50 per […]


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