He believes this is appropriate in the context of increased transparency and a debate on what com-mission attaches to products in general.Although not an outright attack on the ABI paper, Money Marketing gets the impression that Hales, who probably will not mind being described as one of the older, wiser heads in financial services, does not quite agree with the ABI. Nor does MM. Readers can make up their own minds. On page 38, ABI head of regulation and strategy Francis McGee makes a sterling defence of the paper and Aifa’s David Severn makes a sterling attack. McGee notes that the work does show some IFA bias. Some did not recommend Isas when arguably they should have and there was product provider bias. This is concerning. But what is the correct place for these concerns to be raised? We suggest the FSA. It may be grounds for a debate and perhaps regulatory guidance. Is it grounds for a revolution? No. But we fear a newly elected crop of backbench MPs may make merry hell with some of this research. In terms of IFAs themselves, should they increase the proportion of business they do by fees? MM has always suggested that increasing the amount of fee work may make advice businesses more sustainable. But should they be forced into fees? No. The ABI says that, without reform, the commission debate will be running a decade hence. This is true, particularly as multi-ties establish themselves. But just because something is unpopular does not mean it should be abolished. Talk of removing commission is Utopian.The reality, as people such as Hales appear to suspect, is different.
The Mortgage Works
Buy-To-Let Two Year Fixed
Since October 31 last year, the words “clear fair and not misleading” have been echoing down the corridors of that marketing departments of mortgage firms and lenders, leaving them striving to make sure their promotions and marketing are compliant.
An online service offered through estate agents is being set up to speed up the mortgage advice process and end post-sale delays.
Sourcing systems and lenders’ online applications are still not providing the service that intermediaries expect.
Many commentators have suggested the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune Head of European Equities Rob Burnett discusses the likelihood of this happening. Click here to read more Important informationInvestment risks Neptune funds may have a high historic volatility rating and past performance is […]
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Last week I was delighted to have the opportunity to talk about one of the most critical challenges for platforms over the next 5 to 10 years – whichhow do they need to evolve? And by ‘need’ – we frankly mean what’s required if platforms are genuinely to meet the needs of intermediaries and investors […]
Neil Woodford has upped his stake in Provident Financial as shares in the consumer credit company double from their August lows. According to a regulatory filing published late yesterday, the star fund manager increased his stake from 19.1 per cent to 20.1 per cent. Provident shares jumped 12 per cent on Friday morning when the […]
I have worked in retail financial services for the last 30 years, from the coal face as an IFA to the back office as head of compliance or technical services. Throughout this time, I have always believed the UK should follow the American Securities and Exchange Commission model of regulating products alongside the advice provided. […]