Product providers say the FSA's 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't be forced down the multi-tie route but can now make a rational decision about what business model they want to adopt.”