Multi-ties will not bring any benefit to the consumer and are the “last throes of the old age of financial services”, says Origen chief executive Gareth Marr.
The head of the Aegon-owned national IFA has att-acked multi-tying IFAs, saying that for too long, the industry has been focusing on itself, squeezing out margins between distributors and manufacturers rather than focusing on what is right for the consumer.
Marr says that although multi-ties benefit the manufacturer and the distributor, they have no benefit for the consumer.
He says very powerful distribution brands are what will attract the consumer and argues that tied deals restrict distributors' ability to focus on true advice.
Marr says the rush to multi-tie will still continue into next year but by the end of the year, it will start to “go wrong”, with tied and multi-tied distributors loosing business to true IFAs.
He says: “Not a single provider has convinced us that multi-ties will benefit consumers. They are the last throes of the old age of financial services.”
Sesame Group strategy director Charles Bry-ant says: “We have taken a very consumer-focused multi-tie view. Multi-tie will not be good for all consumers but those who traditionally bought from tied agents will now have more choice and better advice.”