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FSA plans to rework DPS would make switch to multi-tie a choice, not a necessity – providers

Product providers say the FSA&#39s announcement that it wants to rework the defined payment system is good news for IFAs.

The proposal to rework DPS into of a payment regime that will allow all IFAs to continue to remain independent would mean IFAs can choose what business model they prefer, rather than being forced to multi-tie, they say.

Scottish Equitable business development manager Steve Cameron says: “They are proposing to scrap AFAs, so there will be IFAs, multi-ties and tied agents. This is great news for IFAs because those that want to remain independent will be able to do so without major changes to their business.”

Norwich Union director of marketing Robert Fletcher says: “This announcement means IFAs won&#39t be forced down the multi-tie route but can now make a rational decision about what business model they want to adopt.”


Derbyshire launches dual bond

Derbyshire Building Society is launching a dual bond this week which invests partly in a fixed rate bond and partly in a stockmarket-linked bond.The bond will invest 30 per cent in a fixed rate bond with an interest rate of 7 per cent per annum and 70 per cent in the society&#39s portfolio plan, which […]

Widow of opportunity

Mrs Williamson is 58. She was widowed 18 months ago and is continuing to receive an income from her late husband&#39s Equitable Life drawdown personal pension. She needs some, but not all, of the income and is extremely concerned about the future of Equitable Life. What should she do with her pension? Mr Williamson sold […]

NU in £500,000 cash rescue of Burns-Anderson

Norwich Union provided a £0.5m bail-out to IFA network Burns-Anderson last month after it had failed to meet FSA capital adequacy requirements for at least four months, Money Marketing can reveal.It had been operating without adequate capital since at least the end of March and it was not until August that NU provided the cash. […]

Aifa believes commission charging advisers can remain IFA

Aifa believes comments from David Severn today about defined payment mean commission charging advisers will still be able to call themselves independent. The trade body believes the regulator will now look for more transparency about the way advisers are charging their clients. Aifa has welcomed today&#39s announcement by the FSA&#39s David Severn that the proposed […]


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