View more on these topics

Pru claims IFAs will be the winners in the new marketplace

IFAs will be the winners in the market after CP121 and the Sandler review, according to Prudential.

In a recent presentation to City analysts, the Pru predicted that by 2005, direct salesforces will practically vanish.

It forecasts that the breakdown in distribution in 2005 will be 7 per cent direct, 1 per cent tied, 3 per cent direct salesforce, 22 per cent bancassurance, 17 per cent ex-direct salesforce multities, 15 per cent ex-IFA multi-ties and 35 per cent remaining IFAs.

Although this appears to be a disaster for IFAs, with market share plummeting from 63 per cent in 2001 to 35 per cent, Pru says the true picture would be IFAs increasing their market share by 4 per cent to 67 per cent.

It claims that, under its broadest definition, IFAs will include ex-direct salesforce advisers and former IFAs that have become multi-tied.

UK chief executive Mark Wood says: “We think the IFA in its broadest market definition actually rises over this period.

“Our overall view is that the major winners from CP121 and the Sandler review are IFAs.”

Aifa director general Paul Smee says: “When the current shape of the market seems as unsure as ever, it is premature to speculate what proportion of business will be taken by any particular distribution channel.”

Recommended

Yorkshire fixes 10-year flexi at 5.44%

Yorkshire Building Society is offering what it claims is the cheapest 10-year flexible fixed-rate mortgage with a rate of 5.44 per cent. The loan allows unlimited overpayments without penalty charges, payment holidays and underpayments. Interest is calculated on a daily basis. Maximum loan to value is 95 per cent. The average procuration fee available through […]

Calculating PI

Professional indemnity insurance is a necessary evil for all people engaged in advice. The complicated nature in which PI works leads to disputes and problems. The pension review has given a large number of headaches to advisers as the definition of a “notifiable event” is not always clear. What constitutes a notifiable event? A compliance […]

Estate of affairs

Mr B has an enduring power of attorney for his elderly aunt, Mrs K, whose property has been sold, realising a capital sum of £120,000. Mrs K is 88 and she is permanently resident in a nursing home. She has no other assets and Mr B wishes to maximise the capital sum available to provide […]

Champion deal for Zurich

Manchester United&#39s financial services arm MU Finance is kicking off the Premiership season by offering customers a cashback incentive based on the team&#39s performance. Under the deal, MU Finance home insurance policyholders will get a £10 refund on premiums if United&#39s players score 47 goals against Premiership rivals this season. The home insurance package designed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment