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Shelton warns IFAs not to tie before Sandler review

It is crucial that IFAs do not succumb to provider pressure and become multi-tied before they know how the Sandler review will affect their businesses, warns Clerical Medical.

Head of group strategy David Shelton says IFAs must think strategically and resist the golden handcuffs he bel-ieves providers are offering to them until the Sandler review is published later in the year.

He says the radical nature of the FSA&#39s polarisation ref-orms – and the width of Sandlers&#39s remit – leads him to bel-ieve the review will contain a few surprises which could throw into question the wisdom of an early decision to multi-tie.

Shelton is also unconvinced that banks – tipped to be major beneficiaries of depolarisation – will seek multi-tie arrangements. He says they are unlikely to generate more profits in the long term from selling the products of other providers.

He says: “It is crucial IFAs wait for Sandler. No one knows what could be in his review. It may completely invalidate an early decision to multi-tie. IFAs must think strategically.”

Scottish Life head of communications Alasdair Buch-anan says: IFAs should be careful not to commit themselves. Sandler has now positioned himself to take an overview of all the reviews. Hopefully the FSA and Sandler have been talking together.”

The Abacus director Philip Martin says: “Multi-tying could be attractive for banks but it is more likely to prevail in the IFA sector. If that does happen, then it would completely scupper the FSA&#39s reason for scrapping polarisation.”

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