View more on these topics

IMA warns of threat to execution-only business

The EU&#39s investment services directive threatens to block execution-only business, claims the Investment Management Association in its response to the current round of consultation on the directive.

In a letter to the EU&#39s internal market directorate general, the trade body says compelling fund managers to query a potential investor&#39s financial situation before undertaking a transaction jeopardises execution-only business.

But the IMA has welcomed proposals to broaden the scope of what constitutes investment advice beyond exclusively fee-remunerated advisers. It believes any lack of consumer understanding can be tackled through enhanced disclosure and conduct of business rules.

Although this response does not attack the FSA&#39s defined-payment system proposals directly, it is as close as the trade body has come to criticising the regulator&#39s plans.

While conceding that the proposed text of the directive says the nature of services must be taken into account, the IMA believes that a distinction between execution-only and other types of business must be made.

Its letter points out that around 20 per cent of funds and 25 per cent of Isas are currently sold on an execution-only basis and the effect of the proposed action would be “to put an end to a market development which is responding to consumer demand”.

The IMA says fund supermarkets are increasingly becoming an important part of distribution and warns that the directive damages them.

Deputy chief executive Sheila Nicoll says: “The Commission must resist the temptation to over-regulate and stifle competition where markets work well and where they provide choice both for retail and institutional investors. Retail investors need to be given the choice of dealing without advice and its attendant costs. Institutional investors should be free to deal where they can get the best deal for customers.”


Express went off the tracks with buy-to-let mortgage application

Specialist lender Mortgage Express makes its debut in Bungle Busters with what it puts down to a “human error” processing an application from an IFA. Peter Cooke from Warwickshire IFA Howell Cooke Financial Services says he spoke to a Mortgage Express call centre representative who told him they could accept an application for a buy-to-let […]

Janet Wyles

When you describe an actuary as funny, normal people would assume you mean funny peculiar not funny,ha, ha. The anorak-averse breed of actuary being a rare species indeed, some might even argue a myth. But Aegon Individual Protection managing director Janet Wyles succeeds where many have failed dismally. She can boast an impressive ability to […]

Generalists could face delegating investment business

General practitioner IFAs may be pressed in to referring their investment business to manager of manager firms as a result of the Sandler review, according to influential analyst Ned Cazalet. Cazalet, principal of Cazalet Financial Consulting, says the Sandler team is getting industry feedback suggesting that generalist IFAs do not have the time or resources […]

B&W combines income & growth

Bristol & West is aiming to provide investors with a mixture of income and growth with it&#39s latest combination product, issue 16 of the balanced guaranteed equity bond.The bond has a six-year term and investors are guaranteed the return of their original capital whatever happens to the indices. It combines a high interest account with […]

Harris Associates' view on the UK’s vote to leave the EU

By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm