View more on these topics

FSA plants seed for decision trees to shake out IFAs

The decision tree is already bearing poisoned fruit.

The relationship between IFAs and providers is now under a pernicious attack with the stakeholder pension and accompanying trees as the excuse.

Money Marketing understands that the regulator has told providers that, where clients are introduced to them by an IFA,if at any time they are subsequently taken through a decision tree by a call centre rep, then the IFA is, at least temporarily, cut out of any payment.

The rep must redirect the potential client back to the IFA for advice if the IFA is to be paid and if the client opts to proceed through the tree, the adviser is permanently cut out.

The irony is that IFAs have been gearing up to cope with the semi-nationalised pension world despite price capping and regulatory interference. The pension reform by its very complexity was set to increase dramatically the need for advice. But this move is depressing news.

It was always possible to accuse the Government of being intent on cutting advice out of the pension process when it imposed an unresearched, untested charging cap that made cost-effective marketing almost impossible.

But with these plans, the FSA may be actively cutting IFAs out of the process as it bids to help product providers take a cut of the all too small stakeholder cake.

It is stacking the odds against the IFA who found the business in the first place. The actions of the regulator are increasingly at odds with the interests of the small businesses it regulates.

Recommended

New brand from merger of Capel and Greig Middleton

Fund manager Capel Cure Sharp is rebranding as Gerrard Investment Funds as part of the ongoing merger of Old Mutual&#39s private client investment subsidiaries. The move will see Capel Cure Sharp and Greig Middleton & Co merged to create Gerrard. Advertising to promote the new brand will start in May with a series of ads […]

Stakeholder can give IFAs introduction

Scottish Equitable is urging IFAs to use stakeholder as a foot in the door to talk to company directors and executives about pension provision. It says it could give IFAs the opportunity to cross-sell executive pensions or SSASs. ScotEq is producing a director&#39s pack with marketing literature, a tax reference guide, sales aids, technical support […]

Give life offices more room to venture forth

The ABI has a shopping list it wants Chancellor Gordon Brown to deal with when he stands up to deliver his Budget. We hope to see the Chancellor announce a wide-ranging review of post-retirement income which would cover everything from annuities and drawdown to all other forms of pensioners&#39 savings. Everyone seems to agree there […]

Tory Govt would ease burden of regulation

The next Conservative Government would make the FSA more accountable to Parliament and relax the level of regulation centred on the financial services industry. It would create a House of Lords committee responsible for vetting regulation which is viewed as too much of a burden on business. Tory Shadow trade and industry secretary David Heath- […]

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