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Only 6% of IFAs plan multi-ties

Only 6 per cent of IFAs have any plans for multi-ties, according to research by The Exchange.

Ninety-two per cent of IFAs say they will stay independent while 5 per cent expect to multi-tie for selected products and only 1 per cent plan to multi-tie for all products.

The Exchange’s 2005 technology index survey questioned 300 IFAs and responses confirm that IT is vital for effective operation in a depolarised world, with over half of IFAs expecting to increase their reliance on IT.

IFA portals are the preferred access point for e-commerce services with more than 75 per cent of IFAs preferring to get quotes through portals or trading platforms rather than direct from product providers.

The Exchange managing director David Child says: “Despite widespread conjecture about the attractions of multi-tie status, most IFAs are committed to retaining their independence. IT has become the lynchpin for IFAs and portals remain the favoured channel for the full range of e-commerce services.”

Jamieson Financial Man- agement principal Bruce Jamieson says: “This is encouraging but I am astonished that it is not 100 per cent. I cannot understand how these multi-tie operations plan to survive. What if someone comes to you with an Allied Dunbar policy? You cannot talk about it. It is like a boy standing outside the sweetshop gazing up at the bullseyes you want but you have a pocketful of liquorice allsorts and the shop is closed.”

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