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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.”


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