View more on these topics

Class divide to open up after polarisation

The scrapping of polarisation under phase two of the FSA review could lead to a new class system for financial advice.

Clerical Medical believes axing polarisation would lead to IFAs offering multi-tied advice to the masses while independent advice would become the preserve of high-net-worth clients.

Clerical says a number of big IFAs are already discussing such moves as contingency plans from a commercial perspective if multi-ties are introduced.

Clerical Medical head of strategic marketing David Shelton says: “We have seen a number of large IFAs thinking in the same way of splitting the business to stay independent for high-net-worth clients, for whom independent advice will still be very important, and multi-tied for those who have less complex needs.”

Misys IFA Services head of marketing Andrew Bedford says: “The issue is about quality of advice, not complexity of products. We can see IFAs offering independent advice for people needing complex advice, these are usually high-net-worth clients, but then offering multi-tied advice for clients who need a minimal amount. Everyone is trying to guess the future but independent advice is important and we need to keep the debate open.”

Towry Law product services director Charles Levett-Scrivener says: “The more likely issue is one of the relationship the IFA has with the consumer.

“It depends on whether people are prepared to pay explicitly for ongoing advice and have a continuing relationship or if it will just be a transactional process.

“High-net-worth clients are likely to want a wealth management service and those who do not want to pay explicitly for it will look for execution-only transactional business.”

DBS spokeswoman Sue Lewis says: “Splitting between multi-tied and independent would not be in the consumer interest.”

Recommended

McDonald Glenross targets technology for second EIS

Private equity specialist company McDonald Glencross has introduced the McDonald Glencross approved enterprise investment scheme (EIS) 2.The EIS is aimed at experienced investors with at least £40,000 to invest and who are looking for capital growth. They will also be looking to shelter any investment gains from capital gains tax.EIS 2 will invest in a […]

Focus survey reveals PMI growth

The latest Money Marketing Focus Healthcare Survey, published this week, includes details of more than 200 products including critical illness, long-term care and healthcare cash plans. The healthcare survey also reveals that therehas been significant growth in the private medical insurance market. Copes are available by calling 020 7292 3730.

Employers aware of stakeholder, says L&G

Legal & General says nearly three quarters of employers with between 5 and 50 staff are aware of stakeholder and almost half of these respondents are willing to contribute to a plan. Those firms which responded to the survey, were weighted to represent 1,576,924 small businesses in the UK and L&G says 74 per of […]

Myners&#39 strike

For the first time, IFAs are being dragged into investigations into the life insurance business with Gordon Brown&#39s Budget announcement last week of a new review into retail investment. Brown has fully accepted Myner&#39s report into institutional investment patterns. In his Budget speech, Brown said he was backing the recommendations to promote long-term investment and […]

How QE is distorting the gilt market

By Mike Riddell The moves in gilts in August were truly exceptional. Volatility in the gilt market (based off 10-year gilt futures) has soared to close to the highest levels seen this millennium, on a par with the eurozone debt crisis of 2011/12 and behind only the global financial crisis of 2008/09. The first distortion […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com