View more on these topics

Competition law reforms &#39have lead to less choice&#39

IFAs have accused the Gov-ernment of operating double standards over its plans to modernise competition laws.

Advisers claim that instead of creating competition, the Government&#39s reforms of the financial services sector have lead to consolidation and less consumer choice. They point to how the introduction of stakeholder has led to the merger or acquisition of sma-ller life offices and IFA firms.

According to proposals set out by Chancellor Gordon Brown this week, there will be radical reform of the UK&#39s competition regime.

The move, aimed at opening up markets, will see the removal of political control of competition decisions pas-sed to the FSA, OFT and Competition Commission in a similar way that monetary decisions went to the Bank of England at the start of the last Parliament.

Kangley Financial Plan-ning managing director Geoff Kangley says: “IFAs are champions of competition. A danger of consolidation does exist with stakeholder. The low charges are a recipe for disaster for the smaller life companies and I think the recent mergers in the industry have been driven by this, which reduces the amount of competitive companies.”

Pearson Jones director Nick Conyers says: “Market forces are not working in the way that the Government intended.”

Roger Sanders Associates principal Roger Sanders says: “Consolidation is happening as we speak with Misys and DBS, which means around that 40 per cent of the market will be loosely controlled by Misys.”

Recommended

Platform focuses on increasing adverse credit market

Specialist adverse credit lender Platform Home Loans has brought in a new fixed rate mortgage for this sector of the market.The mortgage has a fixed rate of 7.25 per cent for loans of up to 80 per cent of valuation for the first year of the mortgage. After the fixed rate period the mortgage will […]

Skandia aspots bottom-up style

Giddy with confidence after recently securing its exclusive deal with New Star, Skandia clearly now has no fear.Speaking at the Skandia Pathfinder conference last week, Skandia director of investments Jim Roberts systematically ripped apart the FSA&#39s arguments over past performance in front of 1,500 IFAs, before premiering its latest piece of artwork showing FSA chairman […]

Actuaries press radical alternative to annuities

A report by a Faculty and Institute of Actuaries working party is urging the Govern-ment to consider its radical proposals to revamp the current pension annuity rules.In a paper published this week, the retirement choices working party unveils details of its personal distribution plan, which would be a guaranteed retirement income vehicle, doing away with […]

Neutral territory

Last week, on a round-trip train journey between London and Leeds, I had to read all 134 pages of the FSA&#39s approach to the regulation of e-commerce. Somewhere around page 50,I found myself looking for a door to jump out of. Unfortunately on the current GNER rolling stock you cannot do this while the train […]

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]

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