View more on these topics

Millfield bases multi-tie on Inter-Alliance

Inter-Alliance advisers will move into Millfield’s multitie once depolarisation begins, according to Millfield’s stockbroker Collins Stewart.

A research note from Coll-ins Stewart written by analyst Tim Young reveals that Inter-Alliance advisers will form the basis of Millfield’s multi-tie.

Young says that as many Inter-Alliance advisers came from direct salesforces, it is closer to a multi-tie operation than the typical IFA and therefore well positioned to capture incremental sales resulting from the arrival of multi-ties after depolarisation.

He says the combined group will have a multi-tied arm of 1,000 advisers by December 2005, absorbing most of the advisers from Inter-Alliance, and says it will have more than 1,850 advisers in total.

Young predicts that Mill-field will move into profit in 2006. He says the combined group is likely to make a loss of £9m in 2005 but forecasts £4m of profit before tax for the year to March 31, 2006 and £17m in the year to March 31, 2007.

Young writes: “Inter-Alli-ance has more advisers but lower productivity per adviser and will form the basis of the combined group’s multi-tied distribution channel.”

Millfield finance director Harry Roome says: “Our multitie plans are moving along as we speak. With the FSA yet to publish final rules, it is not yet clear exactly how a multi-tie arrangement will work but we understand that advisers will be able to act as multi-ties for some clients and IFAs for others.

“A lot of the business written by advisers in Inter-All-iance is suitable for multi-tie but IFAs will be able to choose which route they go down.”



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