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Providers and FSA in multi mix-up

The FSA and many product providers hold contradictory views on how multi-ties would work, claims Clerical Medical pensions strategy manager Nigel Stammers.

He says providers are negotiating multi-tie models with intermediaries on the basis of a guaranteed percentage of distribution while IFAs will have to show they are giving best advice. The FSA&#39s paper does not mention best advice but the FSA confirms that IFAs, authorised financial advisers and multi-tied advisers would all be bound to sell the best product for the consumer.

This would outlaw quotas under multi-ties and mean that distribution could not be guaranteed.

Stammers says: “Providers&#39 views of how multi-ties will work are different to how the FSA sees it. Providers see a system of lock-ins and business production targets but the FSA sees authorised financial advisers and multi-tied advisers operating in the same way.”

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