View more on these topics

Praise for Prudential stance

I want to congratulate the Prudential for publicly declaring that it will take steps to deal with churning.

Last year, I was invited to a discussion hosted by Prudential distribution director Andy Briggs and, interestingly, the IFAs around the table debated this question quite fiercely.

I recall being quite aggressive in my assertion to Andy that as a provider the Prudential had a moral responsibility to tackle churning where they could prove it existed.

I also suggested, with some agreement from others, that it would be commercial suicide if, having identified persistent offenders, they did not deal with the problem, to the point of ceasing to do business with serial churners and even reporting them to the FSA. By doing nothing, they merely give their tacit approval to continued ripping-off of clients.

Like the current 81 per cent of readers who voted in your poll, I support the Prudential’s stance and view this as a positive reason for using the Prudential. Of the other 19 per cent who voted, I can only assume that this is an indication of the scale of the problem or why else would you vote against it?

Advisers who resort to churning should be chased out of financial services and not just from the advice-facing end. If any individual believes that it is OK to treat clients this way or that it is a justifiable way to run a business, they should not be let within a mile of a financial services company.

Prudential’s brave move needs to be endorsed by all product providers and I would like to see this given much greater prominence. Providers who are unwilling to utilise the information they undoubtedly have about individuals and firms that churn should be named and shamed. The costs of churning are undoubt-edly borne by all clients, all advisers and all providers. The sooner this is routed out the better for all.

Dennis Hall
Director, Yellowtail Financial Planning, London EC3


Ant and Dec miss critical point on business protection

TV presenters Ant and Dec have taken out life insurance in case either of them dies but Scottish Widows protection marketing manager Nick Kirwan believes that they should have considered critical-illness cover. If either of the pair dies, the other will receive a payout of at least 2m. But Kirwan says as Ant and Dec […]

Brokers wary of 20-year fixed deal

Newcastle Building Society is offering a new 20-year fixed-rate homeloan at 5.49 per cent for direct customers. Loans can be between 15,000 and 250,000 up to 90 per cent loan to value. There is a 499 completion fee and early repayment charges range from 1 per cent to 6 per cent. Purely Mortgages chief executive […]

Resolution profits soar

Resolution’s asset management business increased by 150 per cent to £14.5m in the first half of 2006.The company recorded profits of £14.5m in its asset management business compared with £5.8m in the six months to December 31 2005.Overall operating profit rose by 35 per cent to £116m compared with £86m in the last half of […]


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