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Return of MCA would be welcomed

The return of the maximum commission agreement would be seen as a welcome step by nearly half of IFAs, according to Money Marketing and Virgin One&#39s State of the IFA Nation poll.

The Office of Fair Trading decided in 1988 that the maximum commission agreement was “significantly anti-competitive” but the Sandler review has asked if there is a case for regulatory intervention in setting commission levels, which is a move welcomed by many IFAs.

Forty-six per cent of the 280 IFAs responding to the survey said the maximum commission agreement would be of benefit to the industry.

It also found that only 9 per cent of IFAs work totally on a fee or commission-rebate basis, suggesting that the FSA&#39s depolarisation proposals for IFAs to operate on a defined-payment basis will affect the vast majority of firms in the IFA sector.

IFAs do agree with the some of the findings in the FSA&#39s research beh-ind the depolarisation proposals and with some of Sandler&#39s criticisms of the industry.

Sixty five per cent said commission occasionally leads to biased product selection and 43 per cent believe commission terms had shored up the market for with-profits bonds.

Scottish Life head of communications Alasdair Buchanan says: “A lot of IFAs are coming to the conclusion that there has been commission excess in a small number of products which has given the industry a bad name.

“But the FSA is running the risk of damaging the whole industry just to tidy up a few areas.”


Mortgage borrowers turn to advice

Mortgage borrowers are increasingly seeking quality advice when looking for a homeloan, according to research by the Mortgage Code Compliance Board.The regulator says more and more borrowers are ignoring low headline rates and the brand names of lenders when shopping for a mortgage and instead seeking the services of a quality broker or IFA.The MCCB […]

&#39Banks and societies the worst on pension advice&#39

Stakeholder advice varies greatly between different distribution channels, with bank and building society advisers giving the worst advice, according to undercover research by the Cons-umers&#39 Association.Four mystery shoppers from Which? visited 38 advi-sers and discovered that while the majority recommended the appropriate product, given the circumstances, the quality and amount of advice varied.The best advice […]

IFAs must deal with inheritance

I cannot believe the comment I read in Money Marketing (January 31) which was attributed to Philip Rose in the news item “ScotEq criticises IFAs over trust plans”.If it is not the responsibility of every financial adviser – whatever they are called – to take into account the passing of money and the question of […]

The regulatory treadmill

Roger Anderson&#39s article (Money Marketing, January 24) prompts the thought how did we get where we are and how do we untie the knot?The FSA was originally sold on the basis that heavy regulation would engender consumer confidence and bring about increased business flow as markets became cleanerRecent evidence suggests the result is just the […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


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