View more on these topics

‘Consumer information needed to end confusion over multi-ties’

A comprehensive public list of multi-tie operators with full details of their panel relationships is urgently needed to stem consumer confusion, says a specialist management consultancy.

Impact Plus principal consultant Guy van Koetsveld says the industry cannot wait for the FSA’s 2007 depolarisation review as multi-tie arrangements are clouded in misunderstanding and risk treating customers unfairly.

He says the information in the list should include whether multi-tie relationships are legal or commercial deals with defined contracts or less formal arrangements with frequent reviews.

Clarity is also needed to enable fully competitive panels to be compared against sub-panels which operate on a best of breed basis or where different providers offer different products.

Van Koetsveld also warns of the potential to create multiple panels, for example, where a multi-tie creates a white-label version of its technology and services as part of a distribution partnership with a provider which is not part of its panel.

He suggests that product ranges may become more restricted in future, with multi-tie-specific products and whole-of-market products which are unsuitable for multi-ties.

He also says the dynamics of relationships within multi-tie panels have introduced a conflict between competitive and co-operative behaviour between providers, which needs to be highlighted.

Van Koetsveld says: “A depolarisation review in 2007 might be all right for the FSA but not for the industry or consumers expecting to be treated fairly.

“If all this is filed in the ‘too difficult’ folder, the likelihood is that there will be no clarity on what is happ- ening to the industry.”

Recommended

Landman retires from Thames

Thames River Capital co-head of emerging market equities Rory Landman is retiring from fund management in his late 40s. Landman built his reputation as head of emerging markets at Barings, working alongside head of emerging Europe Martin Taylor. The pair moved to Thames River in 2001 to build its emerging markets team. The team runs […]

UBS appoints head of UK retail marketing

UBS has appointed Peter Beckett from Schroders as head of UK retail marketing. Beckett will be responsible for all marketing and communication initiatives to intermediaries in the UK, also working closely with the UK sales team. He will report to UBS managing director and head of UK retail Graham Kane. Kane says: We are delighted […]

Barclays MD Greenshields to retire in April

Barclays UK Wealth Solutions and Wealth Management managing director Ray Greenshields has announced he will retire in April.The 58-year old has held responsibility for Barclays Financial Planning, Gerrard, Barclays Stockbrokers, Barclays Life and Barclays Investment Services.From April, Greenshields business units will report to Barclays Wealth Management chief executive Thomas Kalaris.Barclays president Robart Diamond says: We […]

Finding security in bond markets

Martin Foden, head of credit research at Royal London Asset Management, explores the role of secured bonds, considering the impact of default and the characteristics of secured bonds versus supranationals and highlighting some examples. He also examines the evolution of the credit market and rating agency inefficiencies. Read the article in full: The value of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment