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IFAs too risky for credit merchant facilities, say banks

IFAs have attacked three high-street banks for their reluctance to offer credit card merchant facilities to advisers, who they claim are a high risk. director Ashley Clark&#39s application for a merchant account was refused by Barclays, HSBC and Natwest/Royal Bank of Scotland although it is now being considered positively by Lloyds TSB.

Clark says credit card facilities are important for fee-based IFAs as they allow clients to spread the cost of their services as well as enabling more internet transactions.

The problem relates to section 75 of the Consumer Credit Act, under which the bank is jointly liable with the retailer to make a refund for faulty goods or services.

Barclaycard spokesman Ian Barber says: “Unsurprisingly, given what has gone on with pension misselling and so on, it is seen as an area that is dangerous. We are basically underwriting the risk. But I am not aware of us ruling out IFAs as a group.”

Aifa director of public affairs Tracey Mullins says: “This is the pot calling the kettle black. Less than 15 per cent of complaints on life and pensions to the ombudsman are against IFAs.”

Clark says: “The banks are happy for us to bank with them and have our capital on deposit but do not want to offer us merchant accounts. It has been a real battle for us.”


New pension quotation service from The Exchange

The Exchange is launching a new comparative quotation service that enables IFAs to compare pension products and providers on retirement benefits, fund values, charges, transfer values and product features.The service offers compliant customer specific quotes and illustrations for individual pension products. The Exchange general manager Sue Summers says: “Pensions are becoming an increasingly complex area […]

New Sipp administrator for Scotland

A new specialist Sipp administration service has been set up in Glasgow to focus on Sipp administration across Scotland.The @sipp plc plan will be sold through IFAs and plans to offer online services by early 2003.The @sipp plc team is headed by joint vice-chairmen Tom Craig, who is also chairman of specialist management company Craig […]

A defining time for pensions

2002 seems to be the year of the review. On the pension front, the Pickering report was published just after Sandler in early July while the Inland Revenue&#39s recommendations on tax simplification are still to come.IFAs&#39 employer-sponsored pension dealings are mainly of the defined-contribution kind, mostly in the shape of GPPs, stakeholder and AVCs with […]

Global GEB Mini Cash Isa 7 Year Issue 1

Wednesday, 7 August 2002 Type: Guaranteed mini cash Isa Aim: Growth linked to the performance of the FTSE 100, Nikkei 225, SMI and S&P 500 Minimum-maximum investment: £3,000 Investment choice: Deposit account Term: Seven years Guarantee: Capital returned in full at end of term regardless of movement in indices Return: 90% of average growth in […]

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Fit for Work: guidance for employers published

On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.


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