Regarding the article in last week's Money Marketing headlined, Clerical joins the race to buy IFAs, Clerical would like to clear up any misunderstandings that IFAs may have on its stance on polarisation.
Clerical Medical is a firm supporter of IFAs and polarisation and believes that multi-ties represent the worst possible scenario as a distribution channel for the financial services industry.
The introduction of multi-ties would effectively mean that providers rather than IFAs or consumers would control the market. Further-more, our view of the tied agents model is that it did not work well for the agents themselves or their clients in the past and would not do so in the future.
Clerical Medical is currently discussing polarisation with IFAs in the context of all the possible changes to current distribution structures proposed by the FSA, primarily to help IFAs think about the future shape of the industry.
However, Clerical Medical absolutely refutes that any of its
representatives has ever suggested offering any IFA a multi-tie agreement, let alone disc-ussed a figure for such an agreement.
Clerical Medical remains absolutely committed to the IFA channel and the current polarisation structure.
Head of strategic marketing,