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IFAs set to take on providers

IFAs could go head to head with providers in a move which could be devastating to some of the big players in the market, according to independent research by Datamonitor.

The research says IFAs may launch their own branded products to survive industry challenges such as reduced commission, potential changes to polarisation and poor service standards from providers.

Datamonitor says this poses a major threat to many prov-iders which rely on IFAs as their main distribution channel.

It refers to IFAs such as Hargreaves Lansdown, which has already launched its own investment trusts and Isas. Datamonitor says: “The implications for existing providers if IFAs decide to enter this market would be potentially devastating as they rely on intermediaries for distribution.”

However, it says to win back some of the ground, providers may enter more strategic alliances with retail banks and acquire bigger IFAs.

The research found smaller IFAs have the most to worry about in the future, suggesting they will have to consolidate or join networks to survive.

Hargreaves Lansdown head of research Mark Dampier says: “In the future, Isas will not be offered by the likes of Jupiter. Other large IFAs will be left behind if they do not look to doing the same as us.”

Misys head of marketing Andrew Bedford says: “Some of the large national IFAs might bring out branded products but it will not affect product providers that much. I can&#39t imagine why a network would want to do it as it would lose the advantage of selling products with a big brand.”


WAP service from Standard Life

Standard Life Investments is launching a new WAP service which will give daily prices for all Standard’s funds, a search facility for FTSE 100 stocks and competitor funds, market views and news headlines. It will be accessible from any WAP handset. Customers can build their portfolio on Standard Life Investments’ website and review its progress […]

Julian Gibbs

Leading pension provider Skandia has launched a distinctive alternative to stakeholder pensions designed specifically for the IFA market. In the new pension environment,IFAs will need to prove genuine added value in recommending non-stakeholder products. This means it is very difficult for any company with stakeholder products to provide a compliance-proof pension arrangement for the IFA […]

Axe member resolutions, demands Nationwide

Resolutions put forward by building society members place “intolerable pressure” on the boards of mutuals and should be scrapped, says Nationwide chairman Charles Nunneley.Speaking last week at the Building Societies Association conference in Harrogate, Nunneley claimed it makes no sense in today&#39s environment to give customers stakes in mutuals when they can have- like Nationwide […]

Agency joins Allied Dunbar

Northern England based estate agents Reeds Rains is joining the Allied Dunbar franchise network. Reeds Rains has 137 branches and more than 70 advisers, is the largest agency to join the network, which is about to be renamed the Zurich Advice Network. It currently has 4,700 advisers.


Neptune video: Abenomics: the impetus for Japan’s fast-track recovery?

The remarkable performance of the TOPIX over the past year has caused many sceptical equity investors to look again at the Japanese market. These returns have come despite very significant problems facing the Japanese economy. Chris Taylor, manager of the Neptune Japan Opportunities Fund, discusses these problems and whether Abenomics will be able to overcome them, enabling the market to continue to rise.

In the video, Taylor addresses the following:

• The size and speed of Japan’s unprecedented monetary policy
• Abenomics and the implications should it fail
• Corporate Japan and beneficiaries of government policy


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