View more on these topics

Consumers face charter for chaos

Consumers face a bewildering choice of up to five different types of financial adviser under FSA proposals to depolarise the market, say the Consumers&#39 Association and IFAs.

The CA has criticised the proposals, saying they will confuse consumers and give the high-street banks a stranglehold on distribution.

The FSA envisages direct salesforces selling their own or multiple providers&#39 products, multi-tied “distributor firms” advising on a range of providers, independent advisers and a final group offering generic advice.

IFAs fear some tied or multi-tied advisers will masquerade as independent.

But FSA head of polarisation review David Severn calls the CA “misguided” and “daft” for maintaining its support for polarisation, and says the plans will benefit consumers.

IFAs say the changes will take the industry back to prepolarisation times.

DBS chairman Ken Davy, speaking as chairman of the Money Management Council, says: “These reforms put the consumer in the pre-1988 position where we had a discredited system, which is why polarisation was introduced.”

“The IFA sector will be severely damaged, reducing choice for millions of ordinary people and result in independent financial advice only available for the wealthy.”

CA director general Sheila McKechnie says: “We are extremely concerned that the introduction of multities will significantly boost the power of product providers and high-street banks, giving them a stranglehold on distribution. We believe that overall the proposed reforms will be too confusing for consumers.”

Recommended

Genesis Home Loans 3-year discount

Genesis Home Loans, buy to let discountDiscounted term: 2 yearsDiscount: 1.25%Payable rate: 4.5%Minimum loan: £40,000Maximum loan: £300,000Income multiples: 3.25 + 1, 2.75 x jointArrangement fee: £325Redemption fee: 6 months interest at SVR for 3 yearsConditions: rental income must be 130% SVRIntroducer&#39s fee: refer to packagerTel: 01832 275 044

Scottish Widows Investment Partnership – UK Balanced Property Trust

Wednesday, January 16, 2002. Type: Investment trust maxi Isa. Aim: Income or growth by investing in a Guernsey based closed ended investment company. Minimum investment: Lump sum £7,000. Maximum investment: Lump sum £7,000. Catmarked: No. Investment split: 100 per cent in a Guernsey based closed ended investment company. Type of shares: Ordinary. Yield: 6.5 per […]

Boston fund firm makes UK debut

MFS International UK, a subsidiary of Boston-based fund management firm MFS Investment Management, is making its debut in the UK retail market with a UK equity fund.The fund is one of three Oeics introduced as the company expands across Europe. It will consist of a portfolio of 20 to 35 UK stocks selected by a […]

Gartmore Investment Management – Monthly Income Fund

Wednesday 16 January, 2002 Type: Unit trust. Aim: Income by investing in high-yield bonds, investment-grade bonds. Minimum investment: Lump sum £1,000, monthly £50. Investment split: High-yield bonds 70 per cent, investment-grade bonds 30 per cent. Yield: 7.5 per cent gross. Isa link: Yes. Pep transfers: Yes. Charges: Initial 1.5 per cent, annual 1.25 per cent. […]

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment