Sesame commercial director Martin Davis has hit back at Positive Solutions chief executive David Harrison's criticism of the multi-tie model.
Harrison criticised firms going for multi-ties earlier this year. Davis, speaking at Money Marketing Live, claimed Harrison would have difficulty in creating a high-quality multi-tie.
Davis said the strength of a multi-tie is determined by the strength of the brands, pointing out that product providers will only tie to distributors with strong brands.
He said: “I think it is perfectly understandable why those who cannot get multi-ties will try to have a pop at them. We will put together the best multi-tie because of our size. The reality is that multi-tie strength is determined by the strength of the brand, as providers will only tie to those with strong brands.”
Harrison says: “We see multi-tie as a backward step as the best solution is to be able to choose from as wide a range of products as possible. Some firms are looking at multi-ties because of falling revenues because they are losing advisers.”
The presidential election will herald a lagging year for investment in the US whoever wins, investment experts told delegates at MM Live.
Seven IM marketing director Justin Urquhart Stewart said there are factors which complicate the effect of the election result on markets. He said Federal Reserve Board chairman Alan Greenspan has already shown that federal expenditure and debt need to fall but interest rates in the US need to rise.
F&C fund manager Jeremy Tigue said there was concern that there would still be stimulation to keep equities buoyant in the US.
Urquhart Stewart says: “There is always a lag after a US presidential election but there are extenuating factors this time around, particularly stemming from the Fed.”