View more on these topics

Positive Solutions chief blasts multi-tie &#39donkeys&#39

Positive Solutions has made a scathing attack on multi-ties, saying they are being used to rescue failing business models and will line the pockets of companies&#39 directors, not their advisers.

Chief executive David Harrison has warned advisers that they will rue moving to multi-tied status because they will not be able to offer clients the best deals.

Any increases in commission will be short-lived, with most of the money going to the directors of multi-tying networks and nationals. He described advisers at some rival companies as “lions led by donkeys”.

Harrison made the withering remarks at the Positive Solutions&#39 national conference at the Celtic Manor hotel near Newport last week.

The warning comes as Positive Solutions unveiled an incentive scheme offering new and existing IFAs a share of a possible £28m funded by part-owner Aegon. The firm hopes to have as many as 3,000 advisers by 2006.

Speaking to Money Marketing, Harrison said he believes that Positive Solutions “will be one of the few that will be truly independent”.

He said that products sold by independents will be chea-per than multi-tied products and that Positive Solutions will consider TV advertising to “aggressively and honestly name names and show how the market is for independent rather than restricted choice”.

He warned that multi-tied advisers will find themselves selling products which they would never have sold if they remained independent and that they will find themselves going back to being IFAs again.

Multi-ties would simply serve to stop providers having to compete against each other.

He said: “The people who take the money from a multi-tie will be the people at the top. You may get a little extra commission at the start but to do a great job for your clients you must be independent. You cannot do that with a rigged panel.”

Harrison also ruled out looking at setting up a mortgage operation following some service providers and networks, saying it was forced upon companies because they recognised the reality of non-regulated business being done behind their backs. He added that the move would damage their brands.

Recommended

Cause for complaint

On June 1, the FSA again changed the rules governing the time limits applying to customers wanting to complain to firms and the Financial Ombudsman Service about their mortgage endowment policies. The new rules were made by the FSA using its powers under section 155(7) of the Financial Services and Markets Act 2000. This means […]

New flexible self-cert tracker by Pink

Pink Home Loans has launched a new residential mortgage funded by BM Solutions, offering a headline rate of 3.99 per cent. The product tracks the Bank of England base rate minus 0.51 per cent for two years, followed by the base rate plus 1.25 per cent for the remaining term of the mortgage. The product […]

Public fail to realise the risk of disability

Consumer education is key to narrowing the protection gap in the UK, according to The Protection Review 2004 published last week. Le Beau Visage director Peter Le Beau expresses concerns over income protection policies and says UK consumers do not have a realistic view of disability risk. He says: “If the message about the relative […]

UBS provides place for unloved stocks

UBS GLOBAL ASSET MANAGEMENT DEVELOPED ASIA EQUITY FUND Type: Oeic Aim: Growth by investing in developed markets in the Asia Pacific region excluding Japan Minimum investment: Lump sum £1,000, monthly £50 Investment split: 53.1% Australia, 26.9% Hong Kong, 14.7% Singapore, 2.7% New Zealand, 2.6% cash Isa link: Yes Pep transfers: Yes Charges: Initial 4%, annual […]

Can UK companies satisfy global appetites?

By Mark Martin, Manager of Neptune UK Mid Cap Fund

Rapid economic and income growth is leading to a dramatic shift in diet towards protein products right around the globe. UK companies such as Genus, the world’s largest livestock breeder, are benefiting from this increasing demand. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses this investment theme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com