View more on these topics

IFAs at loggerheads on fees

Two leading IFAs clashed over whether consumers are willing to pay fees for financial advice at last week&#39s Money Marketing Live.

True Financial Planning managing director John Baxter, whose umbrella organisation advocates fee-based advice, and Berkeley Independent Advisers chief executive Richard Howells disagreed with each other over how easy it is for commission-remunerated advisers to move to a fee-charging basis.

Baxter said as long as a firm demonstrates it is offering a value-added service, clients will pay fees. But Howells said there is no evidence of willingness to pay fees, meaning that unless a firm has substantial capital behind it, the transition may prove to be out of reach for most IFAs.

Howells said: “How many of us are operating a set-up to move to a fee-based system to do business? There might be the desire to but there is a question of the ability of the small adviser to make the transition to fees.”

Baxter said: “I would not pay a fee for the level of service the average IFA provides to their clients. Advisers must demonstrate value for money so people will buy it.”

Recommended

BSA elects Stroud and Swindon BS chief executive John Parker as new chairman

The Building Societies Association has named Stroud and Swindon Building Society chief executive John Parker as its new chairman, replacing Skipton Building Society chief executive John Goodfellow. Nationwide chief executive Philip Williamson has taken over as deputy chairman. Parker says: “I am honoured and delighted to become chairman of the Association. Having worked in the […]

Easy to stumble in front of the pension goal

Risk is always with us in everything we do but, for some reason, many people seem to have particular difficulty in managing their financial risk. If things go wrong because of mismanagement of financial risk, that damages the whole industry, regardless of whose fault it is. I define financial risk as the possibility of a […]

Children&#39s CI claims rise by 20% at ScotProv

Scottish Provident saw a 20 per cent increase in children&#39s critical-illness claims in the last six months of 2003. The protection specialist has revealed to Money Marketing that the two biggest causes of claims for children are now leukemia and bacterial meningitis. Head of marketing and product development Nick Kirwan says although it is difficult […]

Pension edge

There has been an active debate about the price cap on stakeholder pensions and Sandler products – should it stay at 1 per cent or should it be increased? Whatever the outcome, one thing is clear – people are not saving enough to secure their own financial futures. In the short term, this is painful […]

Responsibility Matters

The latest update from the Sustainable Investments Team at Royal London Asset Management, Responsibility Matters, is now available. In this edition the team look at issues such as the growing acceptance of sustainable investing and technology in China. Read the update here: The value of investments and the income from them is not guaranteed and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment