View more on these topics

Membership of networks set to nosedive, says FSA

Network membership will plummet under FSA depolarisation proposals, with many RIs leaving to become directly authorised multi-tied advisers and remaining IFAs spurning their services, the regulator has claimed.

IFAs are also predicting an exodus of network members back to the tied sector if the proposals are implemented.

In its consultation paper, the FSA says networks may choose to link with what it calls a “host provider” to become its “multi-tied arm” but this will create the issue of “whether individual firms within the networks will choose to remain in the network”. It admits one of the costs of its proposals is that only a few networks would have to multi-tie for a “potentially large fall in the number of independent advisers”.

But the major IFA groups such as Bankhall, Misys and Tenet Group dismiss the claim, saying their networks will hold on to members by offering new services and they will consider setting-up multi-tie divisions.

Misys says it does not exp-ect to lose advisers and will work with the membership to ensure appropriate service offers. Tenet Group, including M&E and Interdependence networks, says it can adapt to what its members require.

Burns-Anderson chief executive Steve Kelland says: “It will mean less choice for consumers and the number of IFAs will shrink. It will cause a mass exodus back to the tied sector.”

Recommended

Morley fine tunes its themes

Morley Fund Management, a sister company of Norwich Union, has introduced the global theme fund, an Oeic that invests in a portfolio of up to 70 global stocks. The fund will not be benchmarked against any index and will have no geographical weightings. It will invest across a range of sectors with stocks being selected […]

Framlington biotech fund adds Isa link

Framlington has made its biotech fund available for Isas, just two months after it said the fund would not be Isa-able because many investors would not understand the risk.The biotech fund, which was launched in November, is managed by star Framlington health manager Antony Milford. However, unlike Framlington Health, which has less than 40 per […]

Stakes and pains

I am an avid reader of Money Marketing but do not recall seeing any article concerning the peculiar stance adopted by Scottish Equitable on its existing personal pension book now that stakeholder is with us.Most major pension providers took a decision months before April 6 to convert the charging structure of their existing personal pension […]

Reforms will hit consumer access to financial advice says IFAP

IFAP has condemned the FSA&#39s polarisation reform proposals, saying they will exclude middle England from quality financial advice.IFA Promotion chief executive David Elms says: “The FSA&#39s consultation paper is called &#39making the market work for consumers&#39 – quite simply, these proposals won&#39t make the advice market work for consumers What they will do is make […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment