View more on these topics

Electronic shock on commission cash

So providers have not been stumping up the commission promised in electronically processed statements, with less than promised being paid into the accounts of many IFAs.

The issue is highlighted this week by Nigel Hopwood, one of smartest cookies on the technology block. Hopwood now works for Bankhall but served years on the other side of the fence with one of the biggest life and pension offices.

He says simply that some providers are just not delivering what they say will into IFA bank accounts.

This is just not on. In political circles, commission may be a dirty word but for most advisers it is the bread and butter of their businesses.

As always, Money Marketing suggests that any IFA business should look at least to increase the amount of business done through fees to diversify the income streams and make it less reliant not just on the whims of politicians but also in this case the incompetence of providers.

Having consulted their clients, many of these businesses do not believe that a move to fees is a realistic alternative.

The failure to pay IFAs what they are owed is just one of a series of admin failings which Money Marketing is highlighting in its Fair Deal for IFAs campaign. In this instance, insurers need to raise their game.

Things are tough in the current climate. There have been all manner of cuts imposed on insurers and massive regulatory and political pressure as well as disappearing product lines but none of this is an adequate excuse.

To promise to deliver money and then not to do so or to be making systematic mistakes in the amount paid into advisers&#39 accounts is a disgrace and should be put right as a matter of urgency.

Recommended

SGAM&#39s Sandhu says winning stocks are the same as 2003&#39s

SGAM special opportunities fund manager Hari Sandhu believes many of the stocks that helped his fund rise more than 50 per cent last year will be strong performers in 2004. Sandhu says that, while he does not expect returns this year to match those of last, 2004 will still be marked by improving growth prospects. […]

Julian Gibbs

Futurevc.co.uk has launched an enhanced range of research services which will give more added value to IFAs and protect them against recommending higherrisk products to clients without making it clear that they are higher risk. The risk map tool, which enables IFAs to search for and select products, has an improved scoring system which is […]

Clerical cuts bonus rates

Clerical Medical has announced it is to cut regular bonus rates by 1 per cent on most with-profits policies. The change sees many with-profits bonds receive a regular bonus of 1.5 per cent, down from 2.5, and 2 per cent for pension policies, down from 3 per cent. Bonuses on its with-profits income fund are […]

MLIM chief Jones leaves company

Merrill Lynch Investment Managers head of UK retail Michael Jones is leaving the group this week, with MLIM refusing to comment on the reasons for his departure. Jones, who has been with MLIM for six years, is being replaced by marketing director Richard Royds, who joined the group in 1997 following its acquisition of Mercury […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment