View more on these topics

IFAP&#39s hotline brings in £13m for advisers

IFA Promotion&#39s consumer hotline generated between £7m and £13m of

commission for IFAs in 1999, according to actuaries William M Mercer.

The company also found the organisation increased profits for product

providers by up to £11m last year.

The calculations were made using the results of a questionnaire which was

sent to a sample of more than 8,000 consumers who had contacted the IFAP

hotline to get details of reputable IFAs in their area.

Mercer calculated from these results that, of the 91,831 consumers who

contacted the IFAP hotline in 1999, a total of 37,651 or 41 per cent went

on to visit an IFA.

Half of these visits led to purchases of financial products. On average,

each purchaser bought 1.6 products.

Mercer used this data to make two projections of the amount of commission

earned by IFAs. The first was a lower calculation assuming that

non-respondents were half as likely as respondents to have purchased a

product. The second was a higher calcula- tion assuming that non-resp-

ondents are equally likely to have made a purchase – hence the range of

commission and profits given.

IFAP says the figures demonstrate that it makes a contribution to the

industry far in excess of its running costs. Product providers give £2.5m

to IFAP each year. IFAs do not make a contribution.

IFAP managing director Ann-Marie Martyn says: “1999 was our most

successful year ever and 2000 looks like beating even that. These new

numbers from William M Mercer demonstrate what we have said all along –

that IFAP is good value for the industry and, in particular, for IFAs who

pay nothing towards our running costs.”


Network lines scrambled as L&G shoots off target

Following demands from IFAs across the nation, Bungle Busters returns tothe fray in the first of an occasional series to expose product providers&#39wayward administration.This time, we take up the case of Kymin Financial Services managingdirector Gerald Davies who called BB following a five-month commissionwrangle with Legal & General.Davies wrote to L&G at the end of […]

IFAs caught in the mortgage Cat trap

Intermediaries and lenders believe finalised plans for Cat-markedmortgages have muddied the already murky waters surrounding the role thatIFAs will play in the benchmarked market.Legal & General marketing manager housing market Richard Verdin says: “Igenuinely do not think that IFAs have differential earnings on their mindwhen they are advising on a particular product over another but […]

Sales staff say they stand to lose out

Royal London&#39s salesforce is claiming that United Assurance&#39s salesforceis getting preferential treatment on redundancy packages.An MSF union spokesman says the Royal London management has intimated thatproposed voluntary redundancies would only be offered to United Assurancestaff.But Royal denies it has said anything of the kind. It is making a takeoverbid for United.It has already told its […]

FSA forcing us to defraud clients

No one can argue with Philip Robinson (Money Marketing, April 6). Clearly,the Trea sury makes all the decisions about regulation.However, since July 1, 1994, we have been led to believe that the PIA (nowthe FSA) are the only advisers to the Treasury.They also have virtually unlimited powers to take any action which theGovernment would sanction.Mr […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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