View more on these topics

FSA claims trees take place of IFAs

The FSA admits the 1 per cent cap is damaging the IFA channel by cutting income and driving advice out of the market.

It says the cap for stakeholder and Cat standards “is leading to a squeeze on revenue in cash terms per sale” for IFAs.

This follows the decline in direct salesforces, “consumer demand for independent advice” and the “need for advice, increased by greater product differentiation”.

The FSA says “many IFA businesses are growing weaker as revenues are squeezed in the 1 per cent world”. It says decision trees and comparative tables have been a double whammy for IFAs, removing the need for advice and putting pressure on margins.

Fund supermarkets are also leading to “consumers making their own buying decisions rather than relying on advice”, effectively making IFAs redundant it claims.

Jamieson Financial Management principal Bruce Jamieson says: “IFAs would have survived 1 per cent. It is ridiculous to suggest decision trees and comparative tables are replacements for IFAs. The consumer gets poor-performing products which cost less.”


Independent view

The Treasury&#39s announcement that mortgages are to be regulated is great news for the industry as well as the consumer. Charcol and other established IFAs and mortgage advisers which already practise strong compliance processes and which believe in the value that advice adds will warmly embrace the move.Those mortgage advisers cutting corners are arguably one […]

Leeds & Holbeck 2-year discount

Leeds & Holbeck Building Society, discounted mortgageDiscounted term: 2 yearsDiscount: 3%Payable rate: 5.75%Minimum loan: Maximum loan: not specifiedIncome multiples: not specifiedArrangement fee: noneRedemption fee: 4 months interest in first year, 6 months in year 2, five months in year 3, four months in year 4, three months in year 5Conditions: will not exceed bank rate […]

Fund supermarket providers divided on change

Fund manager Fidelity has given the FSA plans for polarisation a qualified welcome although it plans to make a full response later when it has examined the proposals in detail.Fidelity executive directive of UK wholesale Robin Threadgold says: “We broadly welcome the philosophy of broadening consumer choice and the availability of advice.” But recently set […]

Fee switch favours multi-ties

IFAs will have to charge fees agreed with clients in advance instead of being paid commission if they wish to remain “independent” under the FSA&#39s proposals.But multi-tied advisers will not be subject to these rules, which IFAs say are unfair and anti-competitive.To eradicate commission bias, the FSA says independent advisers will have to use a […]

Auto-enrolment: tips for employers

The Pensions Regulator (TPR) has released advice on communications for employers, including three tips to help you with your auto-enrolment duties. 1. Allow enough time to select your pension schemeIt’s recommended that you start to prepare for auto-enrolment at least 12 months in advance of your staging date; additionally, give yourself time to choose the […]


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