View more on these topics

Charge cap rise is welcome news

I welcome recent reports of a possible rise in the cap on charges for stakeholders and Isas, although perhaps for a different reason compared with other IFAs.

At Ethical Investors Group, we feel current commission on stakeholder pensions is more than enough for IFAs to make a reasonable living.

We felt this to such an extent that we have recently negotiated a reduction in the AMC on a leading provider&#39s stakeholder pension by asking to be paid less commission(we will write more individual business and therefore earn more in the long term).

So why am I pleased that the cap may be increased?I believe that it is in the interests of my clients and my busi-ness that we have strong and successful pension companies.

Therefore, I feel that any additional revenue generated from an increase to the charge cap should be retained by the companies. It seems to me that the reaction from IFAs to the news may be to clamour for more commission for themselves.

I would counter this by stating that IFAs could, if they can persuade their clients, charge fees on top of the commission. Insurance companies, on the other hand, can only charge within the cap.

Although it rarely feels like it, the truth is that IFAs and companies should work in partnership. As such, I believe IFAs should support a small increase in the cap and accept that the pension companies are the ones that need the extra money. You never know, we might end up getting decent administration and service.

Lee Coates

Director, Ethical Investors Group,

Cheltenham, Gloucestershire


Market forces

Last week, I looked at the services Skandia is making available to IFAs to help populate their own websites. The first fund supermarket to launch tools to populate IFAs&#39 own websites was Fidelity&#39s FundsNetwork.It is nearly a year since it launched this facility initially via The Exchange, which would offer a standard version of FundsNetwork […]

Think tank says UK economy wil outperform G7 next year

The UK will avoid gong into recession in the coming months, according to a report by the Natrional Institute for Economic and Social Research.The NIESR says the UK will have the best growth of all the G7 countries in the coming year.It predicts the UK economy will grow by 2.3 per cent this year and […]

Product matters

A number of groups are launching new funds at the mom-ent. Given the present state of the investment market, they will prob-ably struggle to obtain much new money.A headache for marketing departments but a godsend to investors brave enough to venture out. Smaller funds with dynamic fund managers who are heavily incentivised make for a […]

Sitting comfortably

Advising on phased retirement is second nature to many IFAs. But away from their clients&#39 pension and investment needs, what advisers do to ensure their own slow and comfortable passage into retirement is not always so clear-cut.The high average age of advisers and low capitalisation of firms has been a persistent concern, leaving IFAs in […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm