View more on these topics

Fears that menu may be overdone

Aifa and the ABI have welcomed the FSA&#39s menu proposals but believe that the plan risks becoming overengineered.

Aifa director general Paul Smee believes the menu will enable the value of advice to be spelt out alongside its cost which will boost consumer confidence. He feels the principal of equivalence is strongly backed by the FSA and, as it will apply across all channels, there will be no inference that commission is a second-rate way of paying.

Smee says: “Although this is probably over-engineered, with too many products, we broadly have the core now, and we can use this to demonstrate the value of advice.

“It is unfortunate but does seem to be focused on selling rather than advice. I think the answer would be to alter how the companies describe the services they are providing.”

ABI head of pensions and savings Chris Kenny says the reforms should allow the savings industry to operate within a more competitive and transparent market.

Kenny thinks the menu will make it easier for the consumer to shop around not only for the best product but also for a deal where they know and understand how much financial advice will cost them.

He says: “We are pleased to see there will be further consultation on the details of the menu because it will not achieve its goal if it becomes over-engineered. We need to study today&#39s proposals to be sure they work fairly across all channels and look forward to continued discussions.”

Recommended

Abbey in shake-up for wrap

Abbey&#39s group marketing director is taking charge of its criticised wrap platform as part of a major structural reorganisation which will see the management team handed other responsibilities. Janet Connor is taking on the role largely performed by marketing director of wealth management and banking Hugo Thorman. Head of wrap for intermediaries Steve Conley is […]

L&G has the cure after NU fails medical

I am an IFA and wrote a policy on myself and my wife. Here is how the story goes. I have just bought a house and need life cover. With five weeks to completion of contracts, we take out the life cover with Norwich Union for £210,000. With three weeks to completion of contracts, Norwich […]

BTL borrowers invest to cover pension- Mortgage Trust

More than a third of buy-to-let borrowers are investing in property to cover their retirement according to research from the Mortgage Trust. The quarterly study of buy to let investors has revealed that 35% consider the need to supplement their pension to be the primary trigger which initially led them to purchase residential investment property. […]

Axa Sun Life cuts with-profits payouts

Axa Sun Life has cut bonuses for its 1.65m with-profits policyholders, with bonuses on bonds cut to 2 per cent for the year to March 2004, from 2.5 per cent the previous year and personal pensions cut to 2.25 per cent from 3 per cent. Bonuses for mortgage endowments with a 3 per cent guarantee […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com