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IFAs beat direct sales on cheaper distribution

IFAs are a cheaper distribution channel than their direct-selling rivals

when it comes to nearly two-thirds of unit-linked and with-profits

products, according to the latest FSA disclosure survey.

The survey, from December 2001, looks at 24 products comparing the total

remuneration advisers received over five years. It shows that in 15 out of

24 products, IFAs accepted a total remuneration of up to 62 per cent lower

than company representatives.

The FSA refuses to draw conclusions from the survey, saying the results are

not overwhelming, but providers are urging the regulator to take the

findings into consideration when designing the postpolarisation regime.

But the FSA says the survey only looks at monetary remuneration received by

advisers which means other incentives common among tied agents such as

company cars make them even more expensive.

Johnston Financial Services managing director Adrian Johnston says: “It

does not surprise me. I would imagine IFAs would be on average cheaper than

tied agents. It shows how expensive it is for providers to acquire business

through the tied channel.”


Aggressive strategy for DWS fund

DWS Investments is seeking to boost its Isa season by rolling out a focusedequity income fund which aims to beat the FTSE All-Share by 30 per cent.Due to launch on February 24, subject to FSA approval, the UK equity incomeplus fund will be a best-ideas fund with a portfolio of around 40 holdings,each weighted at […]

Warnings of backlash on multi-manager fees

Fund-of-funds providers could face resistance from investors if theycontinue to hit them with costly and obscure charges in falling stockmarketconditions, IFAs claim.Research conducted for Money Marketing reveals that third-party fundmanager fees and attributable expenses continue to raise total expenseratios for many multi-managers to between 2.5 and 3 per cent a year.The worst offender is Artemis, […]

91% of members are satisfied with IFAP&#39s service

Ninety-one per cent of IFA Promotion members are satisfied with its effortsto promote independent financial advice, according to research by agencyConsensus.Its survey of more than 2,000 IFAP members also reveals that 68 per centbelieve they are getting excellent value for money.The survey, conducted in November, also found that 86 per cent of consumerleads generated through […]

Bafta night for Forum

The Financial Services Forum is holding its third annual members&#39conference on February 26 at the British Academy of Film and TelevisionArts on Piccadilly in London.Contributors to the conference include Abbey National marketing directorJanet Connor, First Direct head of brand Nick Bowyer and AMP head ofthird-party distribution Damon Watkins. All members of the FinancialServices Forum are […]

Auto-enrolment: tips for employers

The Pensions Regulator (TPR) has released advice on communications for employers, including three tips to help you with your auto-enrolment duties. 1. Allow enough time to select your pension schemeIt’s recommended that you start to prepare for auto-enrolment at least 12 months in advance of your staging date; additionally, give yourself time to choose the […]


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