View more on these topics

E&Y: Mutuals ‘well positioned’ to fill post-RDR advice void


Ernst & Young says the mutual sector is “well positioned” to fill the void left by banks that are no longer willing to provide financial advice to the mass market.

Axa and Santander have both closed their advice arms in recent months. Other major banks such as Barclays and HSBC will only offer advice to people with assets above a minimum threshold.

This has led to concerns people who do not have large sums of money to invest will be unable to access financial advice.

In a report published this week, Ernst & Young says mutuals may have a significant role to play in advising mass market investors.

The report says: “Building trust and shared interest with customers is key to driving value, and we are working with a number of organisations to explore how they can retain and reward their existing customers better, as well as attract new ones.

“Mutuals may also be considered well positioned – both philosophically and in terms of their existing relationships – to serve the mass market, to re-engage with the vast number of ‘orphan clients’, to address the ‘advice gap’ opened up by RDR and even to serve the financially disenfranchised.”

The report also suggests mutuals could benefit by “partnering” with other mutuals to offer a broader ranges of services.

It says: “Just like their PLC competitors, mutuals need to be financially robust, well run and deliver excellent and competitive products to their members and customers.

“However, they should also be more capable of collaboration and co-operation with other mutuals than their proprietary rivals.

“Partnering amongst the mutual sector to offer a broader range of propositions or simply to streamline processes could provide a real source of competitive advantage.”


Money Advice Service looks to partner with banks to bridge advice gap

The Money Advice Service is looking to grow its partnerships with banks to bridge the advice gap created by recent high profile exits from mass market advice. Speaking to Money Marketing this week, MAS chief executive Caroline Rookes says she is keen to expand the service’s reach, and that in a year’s time she would […]

McQuaker adds property to multi-manager funds

Henderson Global Investors head of multi-asset Bill McQuaker is investing in property funds across his portfolios for the first time since the credit crisis as an alternative to low yielding bonds markets. McQuaker says the yield available on bricks and mortar looks attractive. Unlike bond markets, it is not a ‘crowded trade’ as investors have […]


RBS posts £826m Q1 profit and seeks return to privatisation

Royal Bank of Scotland has posted a pre-tax profit of £826m in the first quarter of 2013 compared to a £1.5bn loss in the first quarter of 2012. The bank’s Q1 results show group operating profit fell to £829m from £1.15bn in Q1 2012. RBS’s UK retail arm profit fell to £557m from £632 in […]


Apfa calls on Govt to create FCA duty towards small firms

Apfa is calling on the Financial Conduct Authority to have a duty to examine the impact of its rules on small businesses as part of a Government consultation into the role of regulators. In a department of business, innovation and skills consultation to amend the regulators’ compliance code, which closed on 3 May, it asks […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. So it is true,
    The FCA are no longer in control of financial advice.
    E&Y are running the show, deciding who will do what for who needs what.
    Is this a cunning plan, cooked up beforehand, coming to fruition?

  2. If it’s not viable to deal with a low net worth client, why would it make sense for a mutual to advise this group of people and why would they want to anyway? Crackers.

  3. 1990s to 2013 all that consultancy work demjtualising building societies and insurance companies 2013 to 2030 all that consultancy work building mutuals capacity and setting up new ones. 2030 to 2050 demtualisation?

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