View more on these topics

Network members to diversify in wake of stakeholder

Networks are to encourage members to diversify into general insurance and protection as commission from pensions dries up in the wake of stakeholders.

They believe many members will abandon personal pensions as low margin stakeholder style products are launched prior to the stakeholder&#39s introduction in April 2001.

Top networks are forecasting this, and other low margin Government sponsored products such as Catmarked Isas, will force a sea-change in IFAs&#39 businesses.

The decision amounts to the first admission from networks that IFAs face serious pressure following the release of stakeholder proposals.

M&E is holding workshops to teach members how to better exploit markets for accident and sickness cover, and mortgages.

The 345-member network is planning to extend the workshops at the end of the year to take in private medical, household, and buildings and contents insurance, and to cover members of sister network Interdependence.

It is in negotiations with product providers to develop favourable contracts for members in these areas.

It says this will mean IFAs can fight back against increasing competition from high street banks and building societies.

The network says it could offer to market these products for providers.

DBS is predicting the IFA personal pension market will all but disappear with the introduction of stakeholder and about half of its 1,800 members will pull out of the market to develop other business opportunities .

DBS says protection is an under-developed market, and a natural area for IFAs to move into. It is also planning to train members to tap into the market.

M&E chairman Barry Kayes says: &#34The competitive element from banks and building societies and pressure on commissions means members need to find other areas of business to compensate for that shortfall.&#34

DBS marketing manager Steven Spilsbury says: &#34The market for individual personal pensions will almost disappear come stakeholder. Half our members will pull out of the personal pension market.&#34

Countrywide sales and marketing director Max Wright says: &#34To get people to diversify their business is a sensible way to cope with the changing market.&#34


IFA fined over pensions misselling review

The PIA has taken disciplinary action against Leicestershire IFA Bland Bankart Financial Services over compliance failings resulting from the pensions misselling review.Bland Bankart of 26 De Montfort Street, Leicester was fined £20,000 and ordered to pay PIA costs of £2,200.Among the areas identified by the PIA were inadequate monitoring and failure to identify a starting […]

FSAVC review could face legal challenge

FSA plans to penalise insurance companies and IFAs over the misselling of FSAVCs have been thrown into doubt after a City law firm has claimed they may be illegal.The report in today&#39s Financial Times says lawyers Reynolds Porter Chamberlain are warning the FSA that any attempts to fine or penalise IFAs or providers could be […]

Pensions splitting deadline set for end of 2000

The Government has set a target date of the end of 2000 to implement its pension splitting plans for divorcees.It has now published draft legislation outlining its plans which will allow clean break settlements, dividing pension benefits between spouses on divorce.Currently the law only allows pensions rights to be shared by &#39earmarking&#39 part of the […]

Skandia Life revises critical illness definitions but not literature

Skandia Life has announced it will not update its current critical illness literature containing defunct illness definitions until September.The announcement follows the introduction of standard industrywide definitions by the Association of British InsurersSkandia has confirmed it will adhere to the new ABI definitions despite its literature continuing to carry its previous definitions.But the life office […]

Pensions - thumbnail

Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.


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