View more on these topics

Multi-tied or independent?

Edward Vaizey (Money Marketing, February 7) states that IFAs working on a commission basis are effectively already multi-tied and those paid fees are (unquestionably and logically) independent. This is nonsense.

Integrity and efficiency have absolutely nothing to do with the way one is paid. One only has to see the disparate results of surgeons to see that.

I used to work for a national firm of accountants which was firmly fees-only. The moment the client walked through the door the fee clock started ticking and we had to time everything to the nearest 12 minutes.

However, on the other side of the coin all commission that was received was kept – even if it was held against future fees.

No discounts whatsoever were contemplated or ever made. They therefore got the best of both worlds. After I left, the company employed an ex tied agent who did not even know what an annuity was.

The fact is that many IFAs paid on commission do a lot of “free” work such as, for example, doing valuations and helping wind up estates for solicitors (who are charging).

Why is it that the IFA helpline at the National Savings Centre is so often engaged? I cannot imagine it is because there is a queue of people trying to earn commission.

The chances are that National Savings certificates are being recommended by IFAs without even a fee being charged.

Finally, remember that a lot of products do not pay the full amount of commission, such as Norwich Union&#39s corporate bond, some pay no commission at all, such as M&G&#39s Charifund, which presumably must get recommended by some IFAs and, of course, the ubiquitous Equitable Life who now have the nerve to say that it may benefit IFAs in transferring away from that company.

B Jamieson

Jamieson Financial Management, Bognor Regis


Stay under cover

I am in the process of selling my house and plan to move into rented accommodation for up to three years before hopefully purchasing the property of my dreams. I am reluctant to continue paying premiums to my endowment for life and critical-illness insurance while without a mortgage, other debts or family and feel that […]

Part-time pensioners

Much of the discussion about retirement is framed in a rather gloomy way. For example, one problem is that the period of retirement for many people is getting steadily longer.A longer period after work does pose challenges for the individual. All other things being equal, someone aiming at a given income for a longer period […]

New Bond from Britannia BS

Britannia Building Society has launched a three year fixed rate bond with a 5 per cent annual interest rate over its term. The minimum investment on the bond is £1,000 and there is also a monthly interest option of 4.75 per cent with a minimum of £2,000.

B&W splits Toisa

Bristol & West has established the flexible Tessa-only Isa (Toisa) which consists of a guaranteed equity bond and a five-year fixed-rate bond.Investors have two options under the Isa. They can invest all their money in the guaranteed equity bond element or they can invest up to one-third of their capital in the fixed-rate bond, with […]

Tree - thumbnail

The politics of healthcare

Healthcare is already one of the key battlefields in May’s general election, with each of the main parties committing to deliver improvements to the NHS and public health.


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