View more on these topics

Clerical sees end of boom in non-regulated products

The boom in IFA sales of non-regulated products will come to an end when regulation of protection and mortgages comes into force next year, Clerical Medical has warned.

Head of sales Graeme Riddoch, speaking at Bankhall&#39s 10th anniversary conference in Barcelona last week, said he believed regulation would increase the cost of these products but would also squeeze procuration fees on mortgages and commission on protection products.

Riddoch told Bankhall delegates that he believes IFAs will return to selling traditional products such as pensions in greater numbers following regulation.

Riddoch said: “Non-regulated products are only a short-term opportunity for IFAs. Once they become regulated, procuration and fees will be squeezed and they will become far less attractive.”

But Bankhall joint chief executive Paul Hogarth said regulation would give IFAs an opportunity because many non-regulated brokers would be unwilling or unprepared for the move to a regulated environment. He said IFAs already operating in a regulated environment would be able to take advantage of a “massive” gap in the market for these products.

Hogarth said: “Products that have not been regulated up until now represent a huge market for our members. It is a massive gap. While these types of products will eventually come under a lightertouch regime of regulation, advisers who are used to the regulated environment will be able to work more effectively within that structure.”

Bankhall members speaking from the conference floor warned the FSA that it faced being inundated with applications from currently unregulated general insurance brokers in a rush to get registered before regulation.


Scottish Equitable International (Dublin) – Private Client Portfolio Capital Redemption Bond

Type: Unit-linked bond Aim: Growth by investing in Scottish Equitable International funds and external Oeics or unit trusts from any mainstream fund manager Minimum investment: £75,000 Fund links: Choice of 26 Scottish Equitable International funds and external Oeics or unit trusts from any mainstream fund manager Options: Initial costing, five-year costing, ongoing costingAllocation rates: Initial […]

S&P brings back IMA&#39s categories

Standard & Poor&#39s is reinstating the IMA&#39s sector classifications on all its investment products after the IMA expressed concern over the decision to ditch them for S&P&#39s own.S&P said in July it was replacing the IMA&#39s classifications on its Fund Expert broker tool and website with its newly created global investment fund sector classifications, which […]

Direct Protect attracts 1000 members

Berkeley Berry Birch subsidiary Direct Protect has attracted one thousand members since its launch a year ago. Direct Protect offers term life insurance, critical illness cover, mortgage protection, PHI and general insurance products. Chief executive Don Allan says: “We are totally committed to becoming Britain&#39s most successful protection network. There will always be a place […]

Pep or pet?

According to the latest forecasts from life companies, depolarisation looks set to eliminate a certain type of adviser – the general practitioner.This is, of course, the species of adviser who deals with a wide range of products and with clients who do not come under sector which is being aimed at by the new Sandler […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]


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