View more on these topics

FSA looks at DP alternatives

The FSA is actively considering alternatives to the defined-payment system as it examines the practicalities of implementing the CP121 regime, including a cost-benefit analysis, according to managing director John Tiner.

Tiner&#39s comments, made at the LIA&#39s annual conference in London last week, come as FSA head of polarisation David Severn is known to have told a group of industry figures that the defined-payment system outlined in CP121 has only a 50-50 chance of surviving.

Eighty per cent of delegates at Money Marketing&#39s G80 Conference last week said they believe the DP proposal would be reformed.

In the latest attack on the DP system, the Financial Services Consumer Panel has called it an “unnecessarily complicated system” in its response to CP121.

In his speech, Tiner also said the current polarisation structure acts as a barrier to smaller players succeeding in the market, a claim rejected by smaller fund managers.

He said the industry is suffering from product innovation which has resulted in confusion for consumers. Innovation must be focused on designing simpler products rather than just new ones, according to Tiner.

The FSA wants consumers to benefit from competition rather than the benefits resting with the middleman, he claimed.

Tiner said: “We put forward the defined-payment system as a way to tackle commission bias. We are now looking at a cost-benefit analysis and the practicalities of implementing it. A lot of alternatives have been advanced and we are looking at the DP system very seriously and taking into account the many ideas that have come forward.”

Artemis managing director Jamie Campbell says: “Tiner is being economic about the actuality. Polarisation has created a very vibrant independent sector which means that new and small provider entrants, if they offer products of good quality, have an automatic market to approach.”

LIA director of public affairs John Ellis says: “There are visible signs that the FSA is reviewing the DP system.”

LIA Conference, p10;

Comment, p35


Mortgage 2000 claims electronic lead

Mortgage 2000 claims it has overtaken its main rivals Mortgage Brain and IFOnline to become the biggest electronic mortgage trading platform in the UK.Mortgage 2000 says it got £20m in electronic mortgage applications in April, its highest level yet, and is on track to hit £50m a month by the end of the year.But its […]

ECU Group opens up loan service to IFAs

Currency debt manager the ECU Group is offering its mortgage service to IFAs with the aim of helping their clients slash their loans by taking advantage of exchange rate movements.The service tries to reduce the balance of a mortgage by switching part of it to foreign currencies not performing as well as sterling, including the […]

Get the know-how on the knowledge economy

The knowledge economy is the theme of this month&#39s Institute of Financial Services&#39 seminar, Winning through Knowledge (Part II): Creating Value in Financial Services.The seminar, being held in association with Xerox, offers the opportunity to discuss key strategic issues to innovate and create value.It will address subjects such as the shape of the knowledge economy […]

Managerial incompetence

Like almost every other IFA in the land, I read with knowing sympathy John Morgan&#39s letter (Money Marketing, April 25).The current state of the financial services industry was mainly brought about by Catmarks, stakeholder and all the other ideas this Government seems determined to ram down the industry&#39s throat. But that is not the whole […]

FAMR – a familiar response

Pension specialist Fiona Tait takes a look at the Financial Advice Market Review and assesses the three areas where it suggests improvements can be made With significant budget changes ruled out (for a while anyway), the pension community briefly turned its attention to the FCA’s final report on its Financial Advice Market Review (FAMR), hoping […]


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