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Fidelity denounces &#39crazy&#39 CP121

Fidelity, the UK&#39s biggest fund manager, has come out strongly against the FSA&#39s depolarisation plans, branding them “crazy” and likely to work to the detriment of consumers.

In its response to CP121, Fidelity says forcing IFAs to decide between staying as they are or switching to one of several other adviser models is liable to bewilder clients.

It is particularly critical of the FSA&#39s timetable for implementation, which it believes is unworkable and does not give IFAs enough time to make an informed decision. Fidelity fears this would compel many IFAs to multi-tie, a move it says would achieve the opposite of the regulator&#39s aim to increase consumer choice.

It wants the proposals to be abandoned, with all IFAs simply offering clients the choice of fees or commission. Otherwise, Fidelity believes only the biggest firms would benefit by splitting their businesses into separate IFA and AFA arms.

Head of IFA business Stuart Holah says: “To force IFAs to choose whether they continue as they are or change is misguided and will decrease consumer choice. It is just crazy.”

An FSA spokeswoman says: “We have received more than 500 responses and we are considering all of them.”

•CP121 responses, pages 8, 9 and 10


&#39Equity release could boost IFA business&#39

The equity-release market has the potential to be huge despite limited demand so far from IFAs and their clients, according to market analyst Datamonitor.According to the company&#39s figures, the equity-release market was potentially worth £459bn last year but only £750m was realised.Datamonitor says the actual level of business done was so much less than the […]

Norwich Union Healthcare – Solutions

Tuesday, 1 May 2002 Type: Group private medical insurance Minimum-maximum ages: 16-none Minimum group size: 50 Maximum benefit: None Cover provided: Core cover – hospital charges, specialists&#39 fees, diagnostic tests, radiotherapy, chemotherapy, specialist consultations, physiotherapy, chiropractic treatment, osteopathic treatment, psychiatric treatment, nursing at home, private ambulance, parent hospital accommodation staying with child, hospice care, NHS […]

NU calls for soft loans to IFAs

Norwich Union has broadly welcomed the FSA&#39s CP121 proposals but sounded a note of caution saying it is essential that a substantial IFA sector is maintained.It says providers should be allowed to make soft loans to IFAs as they adjust to a depolarised marketplace to help them through the transitional period.It welcomes the defined payment […]

Allow commission based IFAs says LIA

The LIA believes the defined payment system should be replaced by a menu based option allowing consumers choice as to how they pay their adviser.It fears the introduction of the DPS will force IFAs to migrate out of the sector to become multi-tied which will damage consumers.The professional body believes IFAs should be able to […]


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