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Market clarity will see profits soar, says Millfield chief

Advisers could quadruple their profits after depolarisation if they make clear what part of the advice market they are in, but they risk misselling if they do not make it clear, says Millfield chief executive Paul Tebbutt.

Speaking at Money Marketing Live last week, Tebbutt said advisers can profit from the opportunities which will be presented by depolarisation as long as they avoid the inevitable confusion that will hit some parts of the market.

Tebbutt said he was shocked by the FSA’s decision to allow a whole of market option for multi-ties. He claims that it will be impossible to manage and hard for clients to understand. He said advisers who have not clearly articulated their regulatory position could face the prospect of misselling claims against them and being forced out of business in two to three years.

In contrast, Bankhall commercial development director Shaun Godfrey does not believe misselling will be an issue but agrees there will be confusion. He considers firms are not getting to grips with risk management which could lead to industry implosion because of the knock-on effect of not being able to get professional indemnity cover.

Godfrey said: “I do not see the potential for misselling but there will be confusion. Organisations giving advice need to get to grips with risk management to stop the industry imploding.”

Origen chief executive Gareth Marr said depolarisation was bound to cause problems as many IFAs do not have any experience in offering fees.

Barclays Financial Planning commercial director Stephen Ingledew agreed with Tebbutt about the potential for increased profits, saying depolarisation will whittle the independent market down to 13,000 RIs, meaning adviser value will go up.


FSA set for FSCS rethink

The FSA is understood to be looking at restructuring funding blocks for FSCS fees following criticism that some sectors have been paying too much.

Hard choices on software

Increasing numbers of life companies are reporting that as much as 70 per cent of their new business for certain products is being originated electronically.

Editorial: A hard road for Blunkett

It almost seems like a case of another day another pensions minister under Tony Blair’s Government. Former Home Sec-retary and Education Secretary David Blunkett is the new Work and Pensions Secre-tary. He replaces Alan Johnson, who had been making the right noises about pension reform although admittedly without completing any major initiatives.

Mothers missing out on millions

By Steve Webb, director of policy and external communications The ninth Royal London Policy Paper discusses how thousands of mothers are missing out on state pension rights when they don’t have to Earlier this month we published the ninth Royal London Policy Paper, entitled ‘Mothers Missing out on Millions’. It focuses on the thousands of mothers […]


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