View more on these topics

Fears over low calculations

Industry reaction is that the FSA’s calculation of market average rates errs on the low side.

Aifa currently has an actuary looking into the figures, which are shown in the table published here on the right, but believes that they look low.

IFAs are concerned that the vast majority of the market is on much higher commission scales.

Park Row head of business development Jo Smith says most national IFAs and networks have negotiated higher commission payments with product providers and will therefore look expensive compared with the averages.

Smith also points to the considerable commission changes that have rocked the market over the last six weeks, saying she is concerned that if the market-average rates are only updated every six months, as the FSA intends, the tables will get out of date very quickly.

Smith says: “A vast proportion of the market is on considerably higher commission scales than those shown. I cannot understand why the market average is so low. Also, if you consider how many consumers have problems working out APR, you have to ask if using this measurement of net present values for commission rates is the best way.”

Aifa director general Paul Smee says: “These figures look on the low side but this is not confirmed. We have currently got an actuary looking at them.”


Halifax comments on depolarisation

Halifax press officer Paul Fincham says: “Halifax will continue to offer its own products through Halifax advisers in Halifax and Bank of Scotland branches. Where our product range can be improved by offering another provider’s products we may consider doing this, but only if the products can offer our customers the best possible value.”

Aiming for global growth

Investec Asset Management has created an onshore version of its offshore global energy fund in response to IFA demand for a Ucits-qualifying fund in this sector. The fund will mirror the Guernsey-domiciled GSF global energy fund and will aim for growth by investing globally in companies involved in the explanation, production or distribution of oil, […]

Pru maintains projected rate at 5%

Prudential has kept the projected growth rate for its Prufund Investment Plan at 5 per cent net of charges for the next three months. Pru’s second projection for the product runs until February 24. This rate drops to 4.5 per cent for investors taking regular income.


Almost nine in 10 employers admit failings with post-DRA compliance

The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.


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