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Skandia wants tied change

Skandia is calling on the FSA to focus on reforming the tied sector – where it believes consumer choice is unreasonably limited – but to adopt a lighter touch for IFAs, as part of its response to CP121.

It is proposing a simplified regime with status disclosure and terms of business being replaced by a “needs-based” disclosure.

This would be a simple one-page document detailing product areas and whether the adviser is making recommendations from a single company, a range of comp-anies or across the market.

It would also detail the remuneration method and be signed by adviser and client.

Skandia suggests the FSA take a step-by-step approach to change. It suggests that the most fundamental distortion to the market comes not from distribution channels but from “the deficiencies of reductions in yield as a measure of price”.

Skandia managing director Nick Poyntz-Wright says: “If the FSA is adamant that IFAs must solely be fee-earning then we anticipate a massive move to the new middleground AFA status. We expect that as many as 90 per cent of IFAs will opt for this if the FSA is intransigent on this point.”


Aifa presses FSA for basic rethink on DP plan

The FSA is reeling under the weight and clamour of the response to the CP121 consultation, with over 500 replies. Here and on pages 9 and 10, we publish some of the industry points that have been madeAifa is calling for a fundamental rethink of the FSA&#39s defined-payment system proposals set out in CP121.It has […]

Temple stresses importance of clear distinction

A clear distinction between an intermediary advising on the whole of the market and a multi-tied adviser is the key to a level playing field for financial services, according to RJ Temple.It argues it is more important for consumers to understand the difference between whole of market and tied advice than whether an adviser is […]

Citibank bonds with US index

Citibank has designed an offshore guaranteed equity bond that is linked to the S&P 500 index during a three-year term.The bond is only available to investors who have an account with Citibank. It guarantees the return of the original capital, regardless of the movement in the S&P 500 during the term, plus minimum growth of […]

&#39Commission and better than best to stay,&#39 says MP

Shadow Paymaster General Howard Flight is calling on the FSA to clarify its position on IFA commission and better than best, saying he was told they would be retained.In a private conversation held with a senior FSA official only days after the publication of CP121 in January, Flight said he was told the better than […]


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