View more on these topics

Multi-ties will add to the providers&#39 pressure on IFAs

Just which world is Brian Wood living in when he suggests that advisers&#39 power will be increased (Money Marketing, February 21)?

This may be true for bigger IFAs but for individual practitioners, power remains entirely with the product providers.

In the same week that Mr Wood&#39s letter appeared, Norwich Union rang me to say that if I did not increase my levels of business with it, my commission enhancement would be reduced.

There was no suggestion on NU&#39s part that it should improve its products and compete in the market.

I cannot speak for others but threats to reduce commission will not influence my decisions whether to place business with NU.

Neither will my natural inclination to tell NU where to stick its pressure tactics to prevent me from placing suitable business with the company should any arise.

Multi-ties will only increase this kind of pressure to the detriment of consumers. What a pity the FSA lives in the same unreal world as Mr Wood.

Philip Thomas

Thomas Financial Planning

St Helens,

Lancashire

Recommended

Property prices boosted by low mortgage rates

House prices jumped by 1.6 per cent in February from the previous month, with the average house price now £94,965, according to figures from Nationwide.It says the propoerty market is showing no evidence of slowing down and price growth is being driven by rising prices in the regions outside London, such as the South-west, East […]

Company pension contributions

Many companies have year-ends of March 31 or April 5. It has been established that company contributions are one of the most effective ways of extracting capital from the company for the benefit of directors.Any company contribution will normally be allowable as a business expense in the company accounting period when it is paid. Where […]

ScotMut cuts with-profits bonuses

Scottish Mutual is slashing its with-profits bonuses by up to 18 per cent for pension and life policies.The annual bonus rate on unitised with-profits pensions fell by 1 per cent last year to 4.5 per cent and on life policies, it fell to 4 per cent from 4.75 per cent in 2001.ScotMut says continuing poor […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment