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IFAs take double hit on disorganisation

A survey by consultancy Vignette into the efficiency of the financial supply chain has found that most IFAs believe the inefficiency of product providers and disorganisation of clients are at fault in slowing down admin processes.

IFAs say 58 per cent of product providers are disorganised and 17 per cent regularly lose customer documentation. On average, advisers leave at least 16 days for a provider to administer paperwork and 7 per cent say some providers can take eight weeks to respond to applications.

Ninety per cent of IFAs believe their clients blame them directly for the delays in processing paperwork and 58 per cent believe this has a negative effect on their reputation.

Advisers consider that clients waste 10 minutes per meeting trying to find personal documents and 52 per cent of clients can be described as disorganised when it comes to their personal finances and 28 per cent of IFAs say they leave meetings without all the rel-evant customer information.

Fifty-five per cent estimate that financially disorganised customers lose around £1,000 in missed investment opportunities while 19 per cent say it is nearer to £2,000, 14 per cent say £3,000 and 10 per cent say more than £3,000.

IFAs believe 79 per cent that clients could be helped with the introduction of an internet-enabled, consolidated view of personal finances.

Churchill Investments managing director Jamie Ware says: “We often have to copy in our clients on all correspondence to providers to prove to them that we are doing the work and we are not incompetent. However, it is up to the adviser to train the client into being organised and to be clear what is required from them.”


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PI finally starts to fall with 38% cut for King

Life Policies Direct has seen a significant reduction in its professional indemnity insurance with Sesame, following a huge and unexpected rise in premiums last year. The firm, which is based in Telford, saw its PI premium reduced from £65,000 with a £25,000 excess in 2003 to £41,500 with £15,000 excess when it renewed it policy. […]

Axa aims for principal role with panel of 40

Axa is to become a mortgage principal for its tied advisers and others searching for a principal after FSA regulation starts on October 31. The company last year set up Axa Mortgage Solutions, which allowed its tied salespeople to conduct mortgage business. Axa is following rival insurers Legal & General and Friends Provident in setting […]

FSA to attach more publicity to enforcement cases

The FSA is to attach more publicity to enforcement action and to the fines it levies against firms in the future, as it believes fines are likely to be small in comparison with the turnover of companies and publicity is more damaging as it diminishes a firm&#39s reputation, brand and future business. Speaking yesterday chairman […]


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