View more on these topics

Inside Edge: Andrew Bedford

Despite the numerous legislative burdens placed on them over the years, IFAs have proved remarkably adaptable and able to produce opportunities where only problems seem to exist. The myth of the commission-hungry salesman belies the fact that IFAs have proved to be the lowest-cost distribution channel for most providers, have the lowest level of complaints and expend huge amounts of effort ensuring the best deal for their customers, regardless of the remuneration available on any product.

The current changes being debated are not likely to alter the attitude of most of these advisers or the service they give to their clients but will the clients&#39 attitude change?

From research conducted by Misys, we see that clients are not likely to pay any more for advice in the next couple of years than they do now. Will any new structure make it any more likely that the public will start to contribute more for retirement, ill health or death planning?

Will any new structure close the £27bn savings gap or is this caused by a complex welfare system and lack of understanding of the principles and the need to save?

A new client is attracted to an adviser through advertising, word-of-mouth referral or other lead-generation method. Following any changes brought about, the number of people approaching advisers could rise or fall. That is an uncertainty for business planning. However, an existing client is different.

All the research conducted with our 4,500 advisers shows categorically that their existing clients trust them, buy them and their expertise and the status of the adviser becomes somewhat secondary. In effect, as the saying goes, look after your client servicing and they will look after you.

For advice on areas such as retirement options, clients will continue to turn to specialist advisers who have access to the whole market.

Given that the vast majority of funds are relatively small, most clients are not likely to be willing or able to pay for advice by defined payment. Obviously, for bigger funds, the options open to clients are wider but the authorised adviser can offer just as good a service as an independent adviser provided that they have access to the whole market and far better flexibility than those who are tied to a smaller number of players. In effect, the adviser makes the difference.

One of the great features of the system of remuneration by commission is that quality independent advice is available to, and accessible by, those who could not otherwise afford to pay for it. Thousands of small employers and individuals have benefited from this system since 1988 and will continue to benefit from the same service from authorised advisers in the future. IFAs can rely on their clients to stay where they are, despite all the changes, as, in effect, nothing material will have changed for the client. Is it really that simple? Yes, if an IFA is offering the level of service that a client demands – not necessarily needs.

Misys is acutely aware of this with the member feedback we receive. That is why we are investing so much shareholder capital in developing a desktop system called mi-solution. This is interlinked with product provider support and a streamlined advice process that enables members to do their job as efficiently and competently as possible. At long last, technology will be an enabler and provide smart business development through smart compliance, while making advisers&#39 lives easier.

Andrew Bedford is director of marketing at Misys IFA Services


Product matters

Standard Life Bank&#39s Offset takes the development of offset mortgages to the next stage. I am referring to the fact that Standard Life is offering offset on a range of products -all five of its Freestyle range of flexible discount mortgages. Every other lender which offers offset has a single specific offset mortgage, priced differently […]

Building blocks of N&P success

Norwich & Peterborough Building Society can certainly not be accused of sticking to mainstream lending as it has made a point of differentiating itself through niche products such as self-build mortgages.The UK&#39s 14th-biggest society says it is keen to hold on to its traditional roots, not least through a firm commitment to mutuality.General manager Stephen […]

DAD&#39s the word for aggregation service

IFAs will be able to gather all client policy valuations from all providers on the same screen following the launch of new aggregation software.The digital aggregated data technology from software providers DPR Consulting lets IFAs input one set of data and get life and pension valuations through a single portal. Valuations from other services currently […]

A plus from L&G

Legal & General has established protected portfolio plus, a capital protected Isa that is linked to 30 UK stocks for five years.This Isa follows on from the four previous products in the protected portfolio series, but is different in that it offers higher potential growth. Investors will get 120 per cent of the average growth […]


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 thought leadership.

    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