The Investment Management Association consulted only a small number of IFAs during the development of its new managed sector definitions, according to Legal & General managing director of unit trusts Simon Ellis.
He says the IMA’s IFA focus group did not represent small IFA firms. Ellis says: “The research base has fallen woefully short in focusing on fund managers and high-end IFAs. They are not the people who use the sectors. The end-users are consumers, journalists, commentators and generalist IFA firms. If the IMA wants to hear from a broader group of IFAs, it has to go and find them. These guys are busy running businesses.”
The IMA report on the redefinition of the managed sector, published last week, recognises the IFA focus group was “particularly small in size”. The IMA has refused to disclose how many IFAs it consulted.
Director of markets Jane Lowe says: “The IFA group was small in comparison to how many IFAs are out there. It was about the same size as the platform group. If we had been able to run more than one IFA group, we would have but many IFAs did not take up the offer. We targeted IFAs, especially those who have been outspoken in the media.”
Lowe adds that the IMA plans to seek more input from IFAs in its forthcoming consultation on the managed D and absolute return sectors.