View more on these topics

Networks urged to scrap single-tie deals

Just Retirement is calling for networks to ditch planned single-tie annuity distribution deals with providers due to concerns that clients will not get the best deal.

Director Steve Lowe says an increasing number of networks are in discussions with providers over possible single-tie arrangements as they look to boost their revenue ahead of the RDR.

Last month, Money Marketing revealed providers are paying significant amounts of money to distributors as part of long-term distribution deals ahead of the RDR.

These include a proposed £2m, five-year payment for a singletie pension deal between Aegon and Caerus for “sales and marketing activity to support our partnership”. Aegon says the final deal was agreed on different commercial terms.

Lowe says: “We want networks to have a sustainable model. That is in the interests of providers and the members of networks. We need to ensure advisers’ propositions are strong and deliver good value for customers. Single-tie deals will not deliver that.”

Lowe says single-tie agreements run counter to Government efforts to increase the number of people who shop around for a retirement income and will leave advisers at a “huge disadvantage” after the RDR.

He says: “From the adviser’s perspective, being tied to selling products that are not competitive is a huge disadvantage, potentially choking off the oxygen of new business that both advisers and networks rely on to survive. It is important that advisers are clear about whether their clients could end up with poor value deals and understand the risk that could bring to their practice, given increasing competition from comparison services.”

Retirement Solutions director David Bell says: “Single-tie arrangements are a backward step for the industry and do not benefit the client.”



EU treaty letter calls for common framework on financial regulation

France and Germany are pushing for changes to the EU treaty which would see EU member states subject to the same financial regulation and the creation of a financial transaction tax. A joint letter to the European Council president Herman Van Rompuy from French President Nicolas Sarkozy and German Chancellor Angela Merkel sets out more […]

HMRC unit to track down tax dodgers

HM Revenue & Customs has set up a specialist unit targeting people using offshore accounts to dodge UK taxes. The offshore co-ordination unit is made up of 25 technical tax experts, experienced investigators and offshore analysts who will oversee and co-ordinate HMRC efforts to find people who “hide income and capital in offshore accounts to […]

Cameron to insist on safeguards for Britain in new EU treaty

Prime Minister David Cameron says he will only back a new European Union treaty if he secures safeguards for the City of London to protect Britain’s interests. Writing in The Times today, Cameron (pictured) said he will not support a treaty that gives new tax and spend rules to the eurozone unless there are also […]


Standard Life accused over ‘win an iPad 2’ IFA client letter

Standard Life has been accused of attempting to take direct business from IFAs through a client letter mailshot. A letter sent directly to Standard Life customers says they could win an iPad 2 by filling out two pages of personal details. On the final page, the provider asks the client to fill out the name […]

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


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