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Heath warns of multi-ties orphaning millions

Former head of the IFA Association Garry Heath is warning that millions of consumers will be “orphaned” because of an advice black hole if IFAs are forced to multi-tie with the scrapping of polarisation.

Heath, speaking out for the first time since leaving IFA support group PMS and becoming Impartial financial consultancy chairman, warns that the FSA&#39s CP121 plans may leave many IFAs with no alternative but to rebrand or repackage.

He criticises the proposals for shedding no light on how existing clients of IFAs who multi-tie will be serviced if they have products that are not included in the tie. He predicts they will add to the “millions of orphaned clients” already created by the closure of direct salesforces.

Relatively low-income consumers – those the FSA says the proposed changes are designed to help – will become “targets of misinformation on a massive scale”, claims Heath.

He says: “There are millions of consumers who will think that they have advi-sers but who have not. There are practical considerations such as who will service clients who do not want to multi-tie.”

FSA spokeswoman Jackie Blyth says: “There are already IFA firms that bec-ome tied. What do they do? But if this is seen as an issue and IFAs can come up with a practical solution we will look at it.”

•Outside Edge, p38, Heath moves, p120

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