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Phase two looks at triple level which would keep independence

The FSA&#39s phase two polarisation discussions are understood to be looking at introducing three levels of advisers – IFAs, multi-tied advisers and distributors.

Industry sources close to the discussions say the FSA is looking at a model of maintaining truly independent advice through the IFA channel while multi-tied advisers will be linked to a limited number of providers.

High-street financial services companies, such as banks, would act as distributors of their own and other companies&#39 products and would be responsible for their own compliance.

Scottish Life head of communications Alasdair Buchanan says: “The London Economics report was looking at the possibility of introducing a middle point. But the perspective from which you look at multi-ties depends on which end you start from. The problem is that there is no defining description of what a multi-tie is.”

Clerical Medical head of strategic marketing David Shelton says: “This is a reasonable model in terms of keeping regulations consistent with what happens now. Multi-tied advisers and IFAs could be regulated through existing processes and the likes of Halifax and Lloyds could be directly regulated and responsible for their own agents. But the FSA must make sure disclosure is crystal clear.”


UCB Home Loans – 2 Year Discount Option 1

Wednesday, 14th March 2001.Discounted term: Two years.Discount: 1.65 per cent.Payable rate: 6.69 per cent.Minimum loan: £25,001.Maximum loan: Up to 85 per cent of valuation subject to a maximum of £500,000.Income multiples: 3.25 times principal income plus second or 2.75 times joint.Arrangement fee: £295.Redemption fee: 100 per cent of discount received in year one, 80 per […]

Which? consumer critic to join FSA

Which? magazine managing editor Graeme Jacobs is set to join the FSA as head of consumer information. Jacobs will join the FSA this Easter after 10 years with Which?, the magazine of the Consumers Association. Which? has been highly critical of the role of the FSA in a number of areas including with-profits, endowments, pension […]

Norwich Union sustains future

NORWICH UNION Sustainable Future Fund Type: Oeic. Aim: Growth by investing in socially responsible companies via Norwich Union funds. Minimum investment: Lump sum £500 monthly £50. Investment split: Any proportion of corporate bond, UK growth, absolute growth, global growth, managed and European growth. Isa link: Yes. Pep transfers: Yes except absolute growth and global growth. […]

Class divide to open up after polarisation

The scrapping of polarisation under phase two of the FSA review could lead to a new class system for financial advice. Clerical Medical believes axing polarisation would lead to IFAs offering multi-tied advice to the masses while independent advice would become the preserve of high-net-worth clients. Clerical says a number of big IFAs are already […]

'Feeling the Squeeze'

Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]


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