Park Row IFA will not be taking the multi-tie option after a six-month review with its brokers because it says it cannot see a business case for it.
The firm says a review of its strategic direction has analysed the multi-tie option but concluded that it sees little benefit to its business model, brokers or clients.
Park Row says it will continue to look at multi-tying but does not think the benefits will be made clear within the next 18 months.
Head of business development Jo Smith believes the difficulties with multi-tying stem from having to deal with several different companies at once. She says if there was a technical consolidation or transactional platform incorporating all stages of a multi-tie operation, the option would be more satisfactory.
Destini Group operations director Jon Everil says the window of opportunity to enter into a multi-tie proposition is open and will rem-ain open for six-12 months. After that, it may be difficult to break in from scratch.
Everil says: “Multi-tie brings back the ability to sell into the mass market with cheap and efficient products. If a firm wants to rem-ain niche, it is up to them.”
Smith says: “We think multi-tie is often seen as nirvana for firms in terms of sorting cashflow issues but we think multi-tie just does not deliver value.”