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Moody’s rating warning for insurers over RDR

Insurers which rely too heavily on IFA distribution could see their ratings affected following implementation of the retail distribution review, warns Moody’s.

The rating agency says it expects the RDR to have negative credit implications on those companies relying solely on IFA distribution as smaller players will no longer be able to compete by offering higher commission. As a result, it expects insurers to diversify away from IFA channels.

Vice-president senior credit officer Antonello Aquino says that over the long term, the RDR may bring improved quality of advice and a reduction in misselling but adds: “Clearly, there is a risk of a serious disruption to this important distribution channel, which will mean that insurers relying exclusively on IFAs will suffer.

“As a result of the RDR, we expect that insurers will continue diversifying away from IFAs by developing other distribution channels and increa-sing their brand awareness with the public.”

Master Adviser IFA Roy McLoughlin says: “It is not insurance companies moving away from IFAs, it is the other way round. A lot of IFAs are setting up on platforms and bypassing life companies.”


Cofunds founder Creak sets up own firm

Cofunds co-founder and former business development director Andy Creak has set up his own financial services firm. The new company is called RPlan and is based in Chelmsford, with Creak as managing director. The firm was incorporated at Companies House in January. On social networking site LinkedIn, Creak says RPlan will help people to be […]

Davies: People need all sorts of different things depending on their age, disability or care need

Care necessities

Chief executive Barbara Davies talks about being a one-stop shop for advice and linking up with Tim Eadon at Better Retirement. Report by Lee Jones

Resilient results at SJP

Lloyds-backed distributor St James’s Place made a profit of £363.2m for 2009 on a European embedded value basis after losses of £115.9m in 2008. However, under international financial reporting standards, profit before shareholder tax dropped to £49.9m last year from £80.7m in 2008. SJP, which is 60 per cent owned by Lloyds Banking Group, saw […]

Natixis video: Making smarter use of asset classes

Content supplied by Natixis Global Asset Management This video from Natixis Global Asset Management focuses on Active Share. One strategy for the smarter use of equity investments is ensuring you get what you pay for. According to the company, looking at Active Share can give you a better perspective on where performance comes from. Active […]


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