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Multi-ties a done deal, claims Bankhall chief

Scrapping polarisation and introducing multi-ties is a done deal, according to Bank-hall, which claims to be better prepared than traditional networks for the new regime.

Speaking at Bankhall Inv-estment Associates&#39 annual convention in Monte Carlo, Monaco last week, IFA support services group director Paul Hogarth said the advent of multi-ties is a question of when rather than if.

He believes other networks will have no option but to embrace multi-ties as they will not be able to give members the option of rem-aining fully independent bec-ause the product and provider panels they operate already limit the scope of their independence.

Hogarth said networks with panels of six providers for products such as stakeholder already resemble multi-tied arrangements.

Bankhall said it is considering how to restructure its business for multi-ties.

It said it may make nursery network Investment Strategies a multi-tie and retain Bankhall Investment Associates as fully independent. However, Bankhall said it is more likely to offer the two options under both those parts of the business.

Hogarth said despite the changing market, it is a good time for the IFA sector which is responsible for 75 per cent of UK life and pension business while the tied sector is dwindling.

He said: “Multi-ties are a done deal but there are lots of questions and few answers. By good luck rather than good management, we are in a perfect position to give members a choice and can offer multi-tie and independence. Other networks will only be able to embrace multi-tie – they have no choice.”

Misys spokesman Paul Charles says: “Misys is well positioned for changes but until the FSA lays out what the new structure will look like, no one knows the make-up.”

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