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Dampier says IFAs are underpaid

Hargreaves Lansdown head of research Mark Dampier says sales and marketing employees in the financial services sector often earn far more money than they deserve while IFAs are often underpaid.

Dampier believes the fin-ancial sector as a whole rewards average performance with big salaries and bonuses and that in turn IFAs are relatively underpaid for the work that they do.

He says some marketing and sales professionals can be lucky to find themselves in the right place at the right time if their company has the right investment products to sell.

He says: “There are some incredibly average sales and marketing people who get paid a lot of money for not doing a lot. The financial services industry pays well in general and the irony is that, in turn, a lot of IFAs do very badly.

“Clearly, people in sales and marketing on the product side seem to do very well. A unit trust consultant can be in the right place at the right time and earn a fortune.

“The sales and marketing guys generally have none of the responsibilities of an IFA because a lot of the IFA’s job is quite onerous.

“The financial services industry, particularly in London, is top heavy, with sales and marketing staff who do not even run money. The question is, do they add value? A lot of the time the answer is no.”

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