View more on these topics

Deals are already changing industry

Is this anarchy in the UK financial services industry?

Last week brought three major deals covering nearly 500 RIs. Aegon, after a slow start, has pulled level with Norwich Union, Friends Provident, Skandia and AMP with Widows just behind in the dash for distribution. It is hoping to own or part-own between 300 and 400 hundred RIs.

Millfield, flush with provider cash, wants another 15 IFA businesses. The Germans are coming with AWD, Europe&#39s third-biggest IFA group now the UK&#39s third-biggest IFA by turnover.

The first fund managers are considering a move while ZAN has gone into overdrive offering IFAs a massive percentage of turnover to convert.

But do these deals make sense? The intermediaries appear to be retaining control of their businesses while benefiting from substantial investments. For the providers, we remain unconvinced that these deals represent value for money for shareholders or policyholders.

But at least it is not an estate-agent-style fool&#39s gold rush. As for better than best, we understand why these companies might seek such a change but to grant a waiver at this stage would be tantamount to abolition, which must surely wait until all the other rules are finalised. We do not know how it will all pan out, nor do the parties to these deals, nor for that matter does the FSA.

Intermediary businesses will see more investment – a good thing – while the market is becoming a little more tied -a bad thing. As for whether it is anarchy, organised chaos, or the “perfection” of the free market, we shall have to wait and see. But one thing is clear – even before it is implemented, CP121 has changed everything.


SLFoC offers partners and employees cover deal

Sun Life Financial of Canada is offering a group life and group income protection facility featuring cover for firms which have both staff partnerships and employees.SLFoC says businesses such as legal and accountancy firms often have staff that are equity partners drawing a monthly income from the business as well as salaried employees.Partners and employees […]

Chase de Vere opens Birmingham office

Chase de Vere Investments is to open an office in Birmingham in early October. The company is currently recruiting for the new venture and plans to have 15 new advisers in place by the end of the financial year and wants 55 advisers by 2005. Favad Malik will be responsible for the advisers in the […]

Misys&#39 IFAs in threat to quit as PI leaps

Smaller Misys IFAs are threatening to quit after seeing some PI premiums triple to levels they say are “not financially viable”.A Financial Options&#39 sole trader says he was given one week&#39s notice of a 320 per cent jump in his PI bill from £800 to £2,640 per RI.Despite finding alternative cover for a third of […]

Scottish Widows creates new generation of with-profits

Scottish Widows has introduced the flexible options bond, a with-profits bond that provides investors with access to two new with-profits funds.The with-profits growth fund has a current bonus rate of 4 per cent and the with-profits income fund has a bonus rate of 4.75 per cent. Scottish Widows chose to offer two funds because it […]

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]


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 thought leadership.

    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