Wrap adoption is being hindered by the IFA market’s over-reliance on commission, according to round table panellists.Family Office IFA Sebastian Lyle told the Money Marketing Wrap Round Table that the mass IFA market still prefers indemnity commission and does not understand that selling a wrap proposition is a long-term commitment. He said: “The FSA wants to encourage wrap adoption and believes it is a good thing but from the IFA point of view the real issue over wrap adoption is trying to wean the mass IFA market off indemnity commission. “It is about trying to get them off jam today towards jam tomorrow. You cannot build a wrap proposition unless you make them understand it is a lifetime relationship where the trail is more important than the initial commission ever is. “The challenge to the wrap market is to show the IFA market that you can earn a lot more through trail.” Financial Technology Research Centre director Ian McKenna questioned whether all platforms are fully committed to changing the attitude of IFAs more used to up-front commission. Helm Godfrey deputy chairman Roger Sanders said the problem is due to older IFAs who are unwilling to change their approach to giving advice. He said: “A lot of IFAs are going to be retiring in the next five years so are resisting change and sticking to selling products rather than selling advice. Wraps are so important because we do not have a fully functioning retail market here and wrap goes to the heart of that problem.”
If you ask any industry professional, what are the major difficulties their profession will face over the coming 20 years, you will get a whole host of answers depending on their own personal view.
I want to congratulate the Prudential for publicly declaring that it will take steps to deal with churning. Last year, I was invited to a discussion hosted by Prudential distribution director Andy Briggs and, interestingly, the IFAs around the table debated this question quite fiercely. I recall being quite aggressive in my assertion to Andy […]
The traditional sink-or-swim method of recruiting and training financial advisers is no longer the answer to the challenges our industry faces in attracting new blood. We need smarter and more efficient approaches, partly because we cannot afford to squander big numbers of new recruits who have the talent to succeed but who may not be […]
Wrap and platform providers have been accused of protectionism by not allowing bulk re-registration on and off their platforms. At the Money Marketing Wrap Round Table, IFAs called on wrap providers to make the enabling of bulk re-registration a priority. Falcon Group business development manager Piers Denne said platforms are likely to develop in different […]
By Mark Martin, Manager of Neptune UK Mid Cap Fund
Rapid economic and income growth is leading to a dramatic shift in diet towards protein products right around the globe. UK companies such as Genus, the world’s largest livestock breeder, are benefiting from this increasing demand. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses this investment theme.
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