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Clerical predicts doom for the IFA &#39gloom&#39 club

Clerical Medical is predicting a massive cull in the number of IFA firms operating in the UK, believing the number will be nearly halved in three years.

The company claims the current 4,500 IFA firms will be slashed to 2,500 by 2004 as firms either go out of business, consolidate or tie with providers.

The prediction is based on findings from more than 30 Clerical market development workshops and open seminars with independent advisers. The company believes IFAs fall in two broad camps – the “doom and gloom” club and the “innovate and grow” club.

The “doom and gloom” club is technologically averse, ignoring stakeholder and its implications, and is undercapitalised. The “innovate and grow” club is already up to speed on technology, has a sound financial base, and has made decisions regard- ing stakeholder. They have a positive attitude and will find a way to work profitably.

Head of marketing strategy David Shelton says: “These two camps are more pronounced than ever. The doom and gloom club is a recipe for disaster and they will disappear. The innovate and grow club has realised the huge demand for products and advice. It will be the IFAs who have already got their business sorted who will survive.”


CGU with-profits pledge

CGU is promising to top-up any of its 600,000 with-profit endowment policyholders if they have shortfalls.The move follows consumer worries on the way endowments were sold and concerns the policies will not pay off policyholders mortgages.But the promise does not apply if the managers of the with-profit fund produced a growth of less than six […]

Schroders cash injection into banking arm

Schroders, which is selling its investment banking business to Citigroup, is putting aside £200m to establish a private banking arm of its asset management business.Schroders is also saving a “three figure” sum for establishing a new strategy to co-invest in the group&#39s products.But the markets reacted cautiously to the organisation&#39s global plans as shares sank […]

Bid to break &#39unfair&#39 loans

Borrowers may be protected from “unfair” loan contracts if the Office of Fair Trading wins its High Court battle with First National, starting this week.The OFT is claiming First National contracts are “unfair” because defaulting borrowers can continue to be hit by interest charges even after they have been taken to court.The case follows an […]

Small firm stakeholder warning

Financial adviser Grant Thornton is claiming small company workers left out of the stakeholder should act now to organise their future provisions.From April 2001 the stakeholder will have to be offered by companies with five whi employees or more.About 750,000 employees will be left to sort out their own financial affairs.GT has issued advice for […]

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]


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