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IFAP&#39s hotline draws in £18m

IFA Promotion&#39s website and consumer hotline generated nearly £18m in commission for IFAs last year, according to an analysis by actuarial firm William M Mercer.

Its research found a record 263,000 people contacted IFAP last year for details of IFAs in their area, with almost half of callers and 29 per cent of website browsers going on to visit an adviser.

Those who made a purchase bought an average of 1.3 products, generating an average of £380 in commission. As a result, Mercer believes that, through membership of IFAP, advisers earned up to £17.5m more in initial commission last year, with £500,000 in discounted renewal commission.

The most popular products bought were lump-sum investments, which accounted for 53 per cent of sales, followed by pensions at 24 per cent. Protection products accounted for 14 per cent of sales and mortgages 9 per cent.

Another key finding was that three-quarters of people who went through IFAP were satisfied with their meeting with the IFA with whom they were put in touch, with most saying they would use the same IFA again.

However, this figure is slightly down from the previous year, when 81 per cent of respondents said they were satisfied with the outcome of their meeting.

IFAP chief executive David Elms says: “2001 was a superb year for IFAP, with enquiries through our hotline and website up 140 per cent on the previous year. The report demonstrates the unbeatable value IFAP provides to our sponsors and the 10,000-plus members.”

HCF Partnership partner Richard Craven says: “In terms of improving public perception of IFAs, IFAP is doing a good job. But as a business referral generator, I am not so sure.”

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