View more on these topics

Polls show IFAs under pressure

IFA opinion polls following the FSA&#39s polarisation proposals show most IFAs want to stay independent but the pressure of moving to defined payment may force some to multi-tie.

Under defined payment, advisers pre-agree a charge with clients as either a fee or commission rebate. A poll of IFAs on online IFA chatroom theprofessionaladviser.org.uk shows nearly three-quarters will stay independent on a defined-payment system.

But in a poll of 100 IFAs by ProAct Legal, only 3 per cent saw their business as viable under the proposed IFA status and 45 per cent say they would multi-tie under the right terms.

A poll of 300 IFAs by Fidelity found 10 per cent would keep their independent label and move to defined payment, with some 40 per cent saying this transition will be too great for many firms. The survey showed only 4 per cent would opt for multi-ties but 41 per cent want to stay commission-based and 21 per cent want a combination of both.

Research by MM and Virgin One before the FSA&#39s ann-ouncement shows 72 per cent of IFAs would stay independent. Full results of the survey will be published next week.

Recommended

IFAs by any other name

Hey, everyone, relax. This is a consultative paper so it is likely that the eventual changes will be different, anyway – they invariably are.But let us assume they are not. Everyone seems to have overlooked that sitting nicely in between the multi-tie and independent adviser is the “authorised” adviser (look at section four of CP121).You […]

Professional introductions under threat in new regime

IFAs face losing some of their most lucrative clients from professional introducers if they multi-tie under FSA plans.Accountants and solicitors would be prohibited from referring clients to all levels of adviser except IFAs charging fees because their professional rulebooks require them to “act independently” in referring clients.The move could see some IFAs lose up to […]

&#39Customer demand for flexibility boosting Sipp sector&#39

Demand for more flexible pension investment options is driving growth in the self-invested pension market, according to third-party administrator PPML.Its research looking at a cross-section of current and potential Sipp providers found that the ability to take control of contributions is attracting customers.Investors who are reluctant to place their pensions with one provider are also […]

Investment analysis

Poor corporate results, predominantly from across the Atlantic, saw global markets end the third week of the new year lower despite some positive US economic data. The representative FTSE World index shed a further 1.7 per cent last week.In the US, stocks fell after corporate results from IBM and Microsoft put Wall Street in a […]

Europe outlook: Greek gridlock and Italian banks

By Rob Burnett, Investment Director, Head of European Equities As investors await a resolution of Greece’s repayment difficulties, we anticipate a period of consolidation in the European market over the next few weeks. Our base case is that the Greek government and the European Central Bank (ECB) will come to a solution, particularly given the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment