View more on these topics

FSA in pre-emptive strike over inducements for panel places

The FSA has sent out a warning to product providers and intermediaries over up-front payments for panel membership.

It says it has been told that some intermediaries are demanding up-front payments – in some cases, over £1m – as a condition for a provider&#39s products being placed on or even considered for their panel or recommended list.

A letter to the chief executives of banks, building societies, life companies and networks sent out by the FSA last week warns firms that any such payments would be frowned upon by the regulator as they would not be consistent with its rules.

Money Marketing revealed in June how some of the bigger providers such as Legal & General and Standard Life are believed to be offering to pay IFAs&#39 professional indemnity insurance to be on multi-tie panels.

Some of the bigger protection players are also believed to be negotiating panel positions through enhanced protection commission offers, as this will not have to be disclosed on the menu.

The evidence is described by the FSA as anecdotal. FSA spokesman Rob McIvor says: “We heard that this was going on from a number of different sources and needed to give a quick warning so we issued the letter. We do not know if this sort of abuse is or is not happening – this is a pre-emptive strike.”

Informed Choice managing director Nick Bamford says:”It would be naive on the part of the regulator and on the part of IFAs if we did not believe that product providers were already in negotiations. I would be more surprised if they were not.”

Recommended

Kelly tells product providers that cap cash is meant to pay for advice

The Treasury has pledged to review the 1.5 per cent price cap after three years to ensure that product providers are using the rise to pay for advice. Speaking at a Treasury select committee meeting on Monday, Treasury financial secretary Ruth Kelly told MPs that providers should be using the 0.5 per cent increase in […]

&#39Provider stakes in IFAs cast doubt on independence&#39

Product provider investment in IFAs calls into question the independence of the advisory firm, according to Standard Life group chief executive Sandy Crombie, who says Standard would never consider such a move. Speaking to Money Marketing this week, Crombie said that product provider investment – common in recent years as manufacturers and distributors have tried […]

Whitechurch Investment Services placed in liquidation

IFA Whitechurch Investment Services Limited is to be placed in voluntary liquidation as of July 9. The company made the announcement today, while stating that Whitechurch Securities and The Whitechurch Network will continue to trade. BDO Stoy Hayward LLP has been appointed to advise the directors of the company.

Manor Park – Guaranteed UK Selected Growth September 2004

Type: Guaranteed growth bond Aim: Growth linked to the performance of the FTSE 100 index Minimum investment: Lump sum £5,000 Investment split: 100% linked to the FTSE 100 index Place of registration: Guernsey Term: Three years Return: Choice of 210%, 160%, 110% or 60% growth in index at end of term Guarantee: Choice of 85%, […]

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