View more on these topics

Life after depolarisation Zurich: 10-year multi-ties with initial cash and buyouts

Zurich Advice Network is understood to be offering IFAs a 10-year deal with an initial cash payment and buyouts of up to five times annual earnings as part of its multi-tie plans.

Money Marketing believes the provider intends to have part of its business remain IFA and the rest tied in a process it has dubbed “bifurcation”.

Zan would take over ownership of the clients and it is believed support services such as compliance and marketing support will be offered, with enhanced commission terms also on offer.

However, Zurich says it has yet to finalise its plans.

Berkeley Berry Birch chief executive Stephen Ingledew says some of Zan&#39s firms are already operating along similar lines, with some IFAs having a mortgage arm that is a Zan company but with a pension business remaining independent.

Zurich spokeswoman Erica Harper says: “Our model has not been finalised yet. We are saying, watch this space.”

Informed Choice managing director Nick Bamford says: “I think this is an example of product providers recognising there is no future in product manufacturing but the money is in distribution and they want a distribution channel they can control. The more they can influence an IFA, the better the chance they have of controlling distribution.”

Procrown Investments director Barry Painter says: “Zurich and Axa are doing this because they think it will secure market share but they are mistaken. We have seen with direct salesforces, whether multi-tie or tied, the costs rocket. PI insurers will regard multi-ties as a greater risk than IFAs.”

The new FSA chairman Callum McCarthy joined Aifa director general Paul Smee at the Aifa annual dinner in London last week.

At the dinner, McCarthy said the FSA was not interested in specific definitions of the IFA&#39s role in the sales process, preferring to rely on broad principles of conduct. IFAs have interpreted his remarks as the regulator stepping back from providing a definition of misselling, which former chairman Sir Howard Davies had promised to investigate after last year&#39s dinner.


Online quotes could save IFAs £71m a year

The IFA sector could save £71m a year by using technology to provide policy valuations for existing clients, according to figures from the Financial Technology Research Centre. The research analyses how much more expensive it is for an IFA to provide a quote for their client by phoning and researching it through provider sites compared […]

Kevin Duffy on mortgages

England&#39s epic achievements in Sydney triggered a morass of media features all striving to expose newsworthy sub-plots. My own keepsake was the revelation that England coach Clive Woodward had twice remortgaged his home along the path to personal financial security. Woodward is a man of convictions. So much so that his services are now courted […]

FSA proposals for fair treatment of with profits policyholders

The FSA has issued new guidelines for the fair treatment of with profits policyholders. The proposals include publishing target ranges for payouts and MVRs only applied if there has been either a significant change in the value of the fund&#39s assets or if a high volume of surrenders has occurred or is expected. It also […]

FSA probe into illegal trading

The FSA is reported to be focusing its investigation into illegal trading on the top 20 fund managers with significant investments abroad. The regulator&#39s probe into abuses of market timing and late trading follows a similar investigation by authorities in the US headed by New York attorney general Eliot Spitzer which found the practices to […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment