Legal & General has attacked IFAs’ cash demands for making signing up multi-tie panels a “seriously sticky” process.Finance director Andrew Palmer told MM sister title Finance Week that when negotiating multi-tie deals, the opening question from many adviser firms has been “how much are you prepared to pay us to be on our panel?”, leaving L&G forced to drop some deals. It was concerns about such practices that led the FSA to send out “Dear CEO” letters last June warning product providers against paying inducements to secure intermediary distribution. L&G says IFA demands have been less forceful since the FSA’s letter. The company has sig- ned multi-tie deals with Bankhall, Tenet Group and Thinc Destini along with single-ties with Bradford & Bingley and National Australia Group. Palmer says: “The conversations that we have had with some of the panels have been seriously sticky. The opening conversation for many of them has been, how much are you prepared to pay us to be on our panel?” Syndaxi Financial Planning managing director Robert Reid says he is amazed that life offices are surprised by advisers wanting cash to sign the provider to its panel. Reid says: “Given the similarity in the services offered by insurance companies, what other criteria does he expect advisers to use? It is like going swimming and then being surprised you got wet.”
The Personal Range – Individual Personal Pension
IFAs will not be deemed to be holding client money when they rebate commission under a menu fee arrangement, the FSA has confirmed. Aifa director general David Severn raised concerns that the menu system could lead to IFAs effectively holding client money when they get commission from providers under fee arr-angements. This would place them […]
The FSA has told IFAs who have had to pay double fees after leaving a network to become directly authorised that they are unlikely to get a refund.
Turnout is expected to be a key issue in this general election and so the the parties’ appeal to the grey vote and pension policy is particularly important.
By Felix Wintle, Investment Director & Head of US Equities The most recent communication from Federal Reserve chair Janet Yellen has put the market’s sights on September as the most likely month for the first rate rise. This is due to the stronger than expected economic data of late, particularly in employment and housing, which […]
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
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