View more on these topics

Portfolio&#39s claim sparks row with networks

IFA Portfolio is claiming that its members are writing more business than the top 11 networks combined, provoking a furious response from the networks.

An internal Portfolio document, obtained by Money Marketing, estimates that its 2,460 member firms took a total of £463.7m in commission in 1997.

This compares with an estimated £438.6m in commission written by the top 11 networks, including DBS, Countrywide, M&E, Financial Options and Kestrel.

But the networks have attacked Portfolio, questioning the figures&#39 reliability and Portfolio&#39s reasons for producing them.

The figures are based on a survey of Portfolio&#39s members sent out in 1997. Around 15 per cent responded. The commission levels were extrapolated to give an overall figure for the current membership.

The network figures are calculated from current marketing and ad campaigns by the top 11 networks.

The document shows that Portfolio&#39s average commission per firm is 88 per cent higher than the networks at £186,995 against £99,338.

Portfolio managing director Mike Owen defends the figures as a "statistically sound sample". He says: "We are often perceived as a small-firm organisation but 14 per cent of member firms have between five and 10 RIs. We are not the preserve of the sole trader."

DBS chairman Ken Davy says: "Do they authorise members, are they responsible for compliance, PIA fees, ICS levies, and monitoring? If not, they are just a commission-only club. It is essentially greed without responsibility."


Forum is pressing for flexible retirement

The Government is coming under fierce pressure to introduce rules which allow more flexible retirement packages. The Employers&#39 Forum on Age, chaired by FSA chairman Howard Davies, is calling on the Inland Revenue to revamp tax rules on pension payments. In a report this week, the forum says tax rules on pensions are preventing employees […]

New managing director for MMB

IFA MMB has appointed Sean Gilchrist as its new managing director. The appointment completes a major reorganisation.

Direct Line anger at IIB ad protest

Direct Line has slammed the Institute of Insurance Brokers for inaccuracy and “misquotation” after the trade body complained to a TV watchdog about one of Direct Line&#39s ads. The IIB complained to the Independent Television Commission about the current Direct Line TV ad on car insurance. The IIB claims that the ad says: “If you […]

Pensions&#39 concern at NI moves

The Government is increasing employers&#39 National Insurance contributions to 12.2 per cent, prompting calls for IFAs to review their clients&#39 pension arrangements urgently. The Chancellor is radically restructuring the NI system. Under the new regime, employers only pay contributions over the new lower earnings&#39 limit of £81 a week. Brown ditched the system of four […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]


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