IFAs do not plan to advise their clients to transfer out of Standard Life's with-profits fund but will not recommend Standard for new with-profits business, according to a survey for Money Marketing.
Four-fifths of the IFAs in an online poll say they will not recommend their clients to transfer out of Standard's with-profits fund while 20 per cent say that they will recommend clients to transfer but 67 per cent say they will not recommend Standard for new with-profits business.
The problems have also made 42 per cent of IFAs less likely to recommend Standard Life for other types of products.
A total of 318 advisers responded to an online survey which included seven questions on Standard Life's mutuality review, marking the first time that a significant body of IFAs have responded to the situation.
Chambers Morgan James managing director Marlene Shalton says: “Although some clients might be in line for a windfall payment once Standard demutualises, this will take some time to happen and during this per-iod they could be losing money. Once we heard about the solvency problems, we thought it would be prudent for our clients to move.”
Michael Philips proprietor Michael Both says: “I think I would be more cautious. In situations like this, I tend to take a slower approach because once your clients have incurred charges there is no going back.”