View more on these topics

Davy says small IFAs to be post-polar winners

Small IFAs are set to be the long-term winners in a depolarised world, succeeding where national firms and networks fail, according to former DBS chairman Ken Davy.

Local IFA firms will be able to capitalise on the relationships they have built up with clients and offer tailored services to fit their needs, Davy told the Distribution Strategies Post-Sandler conference in London last week.

He said because of the sheer size and diversity of their clients, nationals and networks will struggle to fit into either the multi-tied or IFA camps. He said some of their clients would have no problems paying fees while others would be unwilling to do so.

Along with small IFAs, Davy pointed to banks and product providers as the winners as a result of changes to distribution.

He told the delegates he thought the best case scenario would be a 20 per cent reduction in the IFA sector but that could rise as high as 50 per cent depending on the outcome of CP121.

Davy said: “National firms will see a number of challenges in this new world. They will have advisers and clients who will not fit neatly into any of the proposed categories. Networks will face the same difficulties that national IFAs do.

“Banks, product providers and IFAs will be the long-term winners. Banks and product providers will do well but not at the expense of the small IFA. There may not be as many IFAs in the new world but those that remain will still provide a valuable service to their clients.”


No penalty on tracker loan

The MarketPlace at Bradford & Bingley is offering a two-year tracker mortgage with the backing of lender Mortgage Express.Minimum loan is £75,000 and maximum is £300,000. Loan to value is 95 per cent and any mortgage over 75 per cent LTV will have an annual loan to value calculation.If the LTV falls below 75 per […]

Chelsea offers fixed rate bond

Chelsea Building Society is launching a new fixed rate bond paying 4.2 per cent until July 6 2004. After July 7 the Chelsea Net Bond, will have an interest rate of at least 0.2 per cent above the rate applying to the building society&#39s Instant Option at that time. Interest payments will be made annually […]

Insuring Trevor to pay Paul

In this series of articles, I have been examining the process by which a limited company might be assessed for the possible need for a share purchase arrangement, that is, a strategy by which a deceased shareholder&#39s shares pass to the desired beneficiaries with appropriate payment.In the last article, having identified the need for such […]

Don&#39t make small guys the fall guys

None of us can dodge the professional indemnity issue. We have all seen or will see a huge increase in premiums.That said, I do feel that DBS has handled the problem badly and is unduly penalising the smaller IFA. It has increased its monthly fee for a sole trader from £200 to £330.70 and this […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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