View more on these topics

IFAs confident of survival after depolarisation

More than 80 per cent of IFAs believe they will survive in a depolarised world but fear high-street banks will be the biggest winners to the detriment of consumers, according to a survey from Axa.

The survey, part of the provider&#39s quarterly IFA issues research, found that 83 per cent are confident they would survive the shake-up but only 9 per cent of IFAs would opt to become exclusively fee-based in a depolarised regime.

Fifty-five per cent of respondents say that their businesses would remain largely unchanged.

Asked what distribution model they would adopt, 51 per cent said they would either become multi-tied AFA or divided between multi-tied AFA and IFA while 28 per cent said they would join a network. Only 2 per cent said they would become tied and 9 per cent said they would take the defined-payment system route.

Axa says the results appear to indicate IFAs will pursue a number of distribution models if the reforms are adopted and will take advantage of the opportunities presented by CP121.

Sales and client management director Gary Tarleton says: “It is encouraging to see that the majority of IFAs share our view that they have a viable future following depolarisation. The message we are getting from IFAs is that they are likely to embrace more than one of the business models suggested by CP121 and end up with a hybrid operation possibly encompassing IFA and AFA elements.”

Recommended

Mortgage lending hits £16bn high as price spiral continues

Mortgage lending reached a record level of £16.6bn, in March, up from £13.3bn the previous month, according to the latest figures from the Council of Mortgage Lenders.Building Society Association gross advances were also buoyant, rising by 28 per cent to £2.7bn last month from £2.1bn in February.Net advances by mutuals increased to £682m in March […]

VAT among the pigeons

Continuing this week with the much misunderstood subject of VAT and financial services, I would like to delve into the murky waters of introducer commission.Last week, I examined the rules for exemption from VAT in respect of intermediary services in connection with financial services products such as insurance and collectives. As I said, the rules […]

Scottish Widows goes for strategy

Scottish WidowsStrategic Income IsaType: Unit trust mini or maxi IsaAim: Income by investing in UK investment grade corporate bonds and European non-investment grade corporate bondsMinimum investment: Lump sum £1,000, monthly £50Maximum investment: £7,000Catmarked: NoInvestment choice: UK investment grade corporate bonds 70%, European non-investment grade corporate bonds 30%Yield: 6.33% gross a yearCharges: Initial 3.5%, annual 1.43%Commission: […]

Big three dominate sourcing

Almost 80 per cent of intermediaries use Mortgage Brain, IF Online or Mortgage 2000 sourcing software, according to new research from non-conforming lender Future Mortgages.It questioned 300 brokers last month and found 28 per cent use Mortgage Brain to source quotes, 27 per cent use IF Online and 24 per cent use Mortgage 2000. Mortgage […]

2

Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com