View more on these topics

Out of tune

I am stunned at the revelation of Ron Sandler&#39s view that IFA clients are only satisfied because they think that advice is free when it is really an opaque loan paid for through commission.

This is, however, not entirely unfamiliar territory, given that the Treasury and the regulator quite frequently sing from an entirely different hymn sheet.

The classic example of recent times, of course, is the PIA&#39s insistence that waiver of premium had to be a mandatory recommendation on all pensions until good old Jeff – oops, sorry, Lord Rooker – and his cronies decided to scrap it with a single stroke of the axe at midnight on April 5 this year.

Good one, Jeff, a brilliant coup that must surely have been a contributory factor to your richly deserved peerage.

Currently, we have the Treasury claiming that all members of the public need to make most strategic financial planning decisions for themselves are online access to information, more education and, best of all, decision trees.

Yet the view of Ron Sandler (who, apparently, only works on this particular brief one day a week) seems to be that most members of the public are so dense, naive or obtuse that they believe, unless they have been asked to pay a fee, that their IFA is remunerated by some form of mystical manna from the heavens. And all this in spite of, how many is it, seven or eight years of hard commission disclosure already behind us.

From where could clients possibly believe such commission is paid other than out of their premiums or investment monies? There is nowhere else, is there?

And what is wrong with (potentially reclaimable) indemnity commission, given the amount of work IFAs have to do up front to meet the regulator&#39s compliance requirements for every transaction?

Just what are we paying these people for? Certainly not for their understanding of and insight into the way that our industry works,that&#39s for sure.

Julian Stevens

Partner,WDS Independent Financial Advisers,Kingswood, Bristol


B&W Isas investment cake

Bristol & West is offering a stockmarket-linked cash Isa that tracks the FTSE 100, Eurostoxx 50 and Nikkei 225 indices over a five-year term.The five-year guaranteed equity bond cash Isa offers investors with at least £500 the return of their original capital regardless of the performance of the three indices. However, there is a 70 […]

Bristol & West – 6 Year Income & Growth Bond

Monday, December 10, 2001.Type: Guaranteed equity bond and high interest account.GUARANTEED EQUITY BONDAim: Growth linked to the FTSE 100, Eurostoxx 50 and Nikkei 225indices.Minimum-maximum investment: £5,000-£1m.Term: Six years.Guarantee: Capital returned in full at end of term regardless ofmovement in indices.Return: Capital returned in full along with up to 80 per cent of growthin indices.Closing date: […]

London & Colonial opens up

London & Colonial has introduced open annuity, which allowsannuitants to pass on their pension pot to their heirs when they die. Conventional annuities pool the resources of annuitants and use the funds of those who die early to subsidise those who live longer than expected, but open annuity does not operate this mortality cross-subsidy. Instead, […]

HSBC anger at watchdog ruling over rates switch

HSBC Bank is accusing the Financial Ombudsman Service of overlooking fairness and consumer interest after it lost a ruling about its two-tier mortgage rate strategy offering lower rates to new borrowers. The ombudsman found one of the bank&#39s existing discountrate clients had been discriminated against as they were prevented from switching to a new lower […]

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]


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