View more on these topics

Fear of multi-tie migration

IFA Promotion considers the CP121 proposals will disadvantage consumers because they fail to distinguish between different sorts of authorised financial adviser and will result in some IFAs going multi-tied.

In its response to CP121, IFAP warns that the proposals contain no distinction between distributors advising on the whole market and multi-tied distributors.

It believes that multi-tie agreements will weaken firms&#39 ability to react to poor service or declining competitiveness.

It is also concerned that special terms agreed with a provider to ensure exclusivity could be passed on to consumers as higher costs.

IFAP does not oppose multi-ties in principle but says consumers currently served by IFAs will be seriously disadvantaged if a too rigid definition of independence results in a major migration from IFA status.

IFAP says it supports the capitalisation of the IFA sector by the abolition of the better than best rule and the permitting of bigger provider stakes in firms, as long as this is coupled with mandatory disclosure by providers of ownership or other controlling interests.

Recommended

The many failures of the regulator

Mel Bousted asks why two different life offices take different approaches to the compliance aspects of handling new entrants to a GPP, both of them sincerely believing that their way is satisfactory to the regulator. Very probably, both of them are.The reasons for this situation are simple, obvious and manifold – failures(and waste) on the […]

Inter-Alliance is fastest growing firm

Inter-Alliance has been named the fastest growing company in the UK in the Deloitte & Touche/Independent 100 table of growth companies. The award was given for Inter-Alliance&#39s 72 per cent increase in turnover to £45m in 2001 from £26m in 2000. Inter-Alliance tops the list of the 100 fastest growing independent public companies in the […]

Zurich chooses new chief exec officer

Zurich Financial Services Group has appointed James Schiro as its new chief executive officer replacing former chairman and chief exec Rolf Hüppi. Chiro will take up the post on May 17 and is currently chief operating officer group finance. He is an American and was previously chief executive officer at PricewaterhouseCoopers. At the same time […]

BSA slams watchdog on product rulings

The Building Societies Association has slammed the Financial Ombudsman Service for what it sees as a series of unjust decisions against its members on Tessas, Isas and mortgages.At the BSA Conference in Bournemouth last week, chairman and Coventry Building Society chief executive Martin Ritchley criticised chief financial ombudsman Walter Merricks for his recent rulings against […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment