View more on these topics

IFAs use past performance despite warnings


The vast majority of IFAs turn to past performance to help them sell products despite the FSA proposal to omit it form its comparative league tables.


Research by Newton Fund Managers reveals 80 per cent of IFAs rely on past performance from product providers to help them sell products to clients.


The research also shows that fund manager visits and roadshows were discounted by the 200 IFAs surveyed when it comes to selecting products.


But 78 per cent say administrative support plays its part in the selection process.


The findings come as the FSA comparative information for financial services consultation report proposes that past performance should not be a key determinant of investment decisions.


But the investment industry is convinced past performance cannot be ignored and should be one of the key indicators when selecting a product.


Newton Fund Managers managing director Simon Wombwell says: “The research among IFAs is very revealing. Despite the report by the FSA that raises questions about its importance, past performance is clearly utilised by IFAs in order to advise clients and by investors to make their investment decisions.”


Jupiter sales & marketing director Steve Glynn says: “Almost every purchase a consumer makes is based on an element of history. There is no question past performance should play a part in the selection process.”

Recommended

CA drafted to frontline against multi-ties

The Consumers&#39 Association is being drafted into the frontline in the IFAs&#39 battle against the introduction of multi-ties.The FSA has commissioned a report into the future of polarisation and is taking submissions from across the industry, prompting IFA fears the Government plans to abandon the system.Both Aifa and Sofa believe their bid to preserve the […]

Woolwich gets interactive

The Woolwich has pledged to attract half a million new e-customers by the end of the year with the help of IFAs.The bank aims to woo the new customers to its Open Plan account, which launched in October 1998, but currently has just 50,000 customers.But Woolwich is confident it will able to add 450,000 customers […]

Government attacked by pension funds leaders

Pension fund chiefs have attacked the Government over its ethical investment policy, claiming its may encourage animal rights extremists to attack pension fund managers.The National Association of Pension Funds sparked the row by claiming the Government was creating a climate for potential extremism by forcing pension funds to reveal the extent to which social, environmental […]

IFA is “Sales Professional of the Year”

An IFA has been named Sales Professional of the Year at the National Sales Awards 2000.Mark Bingham received the award at London&#39s Hilton Hotel Park Lane, beating some 2,000 sales professionals from a range of sectors. He wins 6,000 air miles.The 35 year old works for Slough-based IFA Millfield Partnership and attributes his success to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment