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Something for nothing


Online article headlined, Another open letter to the BBC’s Paul Lewis (hopefully the last)

The problem with this debate is that there needs to be an education campaign on behalf of the IFA community to educate clients on charges. For too long, the industry has relied on product charges which although I believe are fair and contractually sound, can be perceived by some, as in Mister Fully Informed, as wrong.

The main point of charges is to come up with a system which compensates the adviser for their work. Unfortunately, many of the UK population do not have the resources to fully fund advice charges upfront as not everybody in the UK are either millionaires or earning over £75,000 a year and therefore contractual charges have become a necessity.

The alternative to this would be to have initial charges funded by some form of finance agreement which I am sure would put off the majority of the public from receiving advice.

As mentioned by others, in no other industry are we expected to work for nothing. A good example given earlier was, would you expect a plumber to replumb your house for no pay or a journalist to write an article for nothing? The answer is no.

So why is it that IFAs are expected to pay high regulatory fees and staffing costs and not receive any remuneration?

Peter Herd



ABI considers amazon-style website for protection

The Association of British Insurers is considering developing a non-advised Amazon-style protection website which would show consumers the types of products bought by other similar customers. Assistant director of health and protection Nick Kirwan said it was looking at ways it could develop a protection website for consumers. The ABI has met with the Money […]


Lower sum assured could lift CI business

Direct Life & Pensions believes take-up of critical-illness cover could be boosted if advisers sold policies with smaller sums assured. Sales and marketing director Neil McCarthy said advisers should look at lower levels of cover that could be more relevant to the public. He said: “CI is seen as an expensive product and traditionally the […]


Openwork confirms plans to convert 2Plan into network

Openwork has announced it is turning its national IFA 2Plan into a network, as revealed by Money Marketing earlier this month. 2Plan Wealth Management will support both registered individuals and appointed representatives and will be run by existing 2Plan chief executive Chris Smallwood (pictured). Openwork, which first announced its plans to acquire 2Plan in September […]


Does bank guarantee take away caveat emptor?

The Financial Services Compensation Scheme’s guarantee of bank deposits has not taken responsibility away from the consumer, according to replies to a question posed by a joint committee member. Lord Maples asked if the FSCS’s guarantee of deposits up to £85,000 undermined the principle of caveat emptor, encouraging people to chase accounts with higher returns […]


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There is one comment at the moment, we would love to hear your opinion too.

  1. And there was me thinking this was going to be an article about FSA bonuses.

    That aside, perhaps the FSA might be the best source of an answer to the closing question, given Hector Sants’ denial before the TSC of the suggestion that the FSA has and is actively pursuing a campaign of destruction against the IFA community. Once all the pips and the juice have been squeezed out of IFA businesses, all that’ll be left is a worthless mangled pulp. It’s happening now.

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