View more on these topics

‘Stop the gravy train of high commission’

Leading industry figures have called for an end to the “gravy train” of high commission and condemned firms for paying massive up-front rates with no clawback.

Delegates at a Money Marketing pensions round table said some providers pay 7 per cent commission on single-premium pension business with no clawback.

Hargreaves Lansdown head of pensions research Tom McPhail said: “Every time you think the ridiculous gravy train has to hit the buffers, someone else comes along and says we will give you big bags of money with no commitment. Providers and IFAs are both guilty of perpetuating this practice.”

Richard Jacobs Pension & Trustees director Richard Jacobs said FSA chairman Sir Callum McCarthy’s recent attack on the industry for churning was a clear warning sign that the regulator will introduce drastic measures to protect consumers if the industry fails to find a solution.

But Standard Life head of pensions policy John Lawson said it is insurers, not consumers, that are losing out from churning and that the Office of Fair Trading could intervene if the FSA interfered in market pricing.

He said: “It is financial madness for some insurance companies to pay 5, 6, 7 per cent on single premiums with no clawback. The market will shift this business as quickly as it gets away with it.

“The big problem is that insurers are not understood by the City. It will only understand when profits start fall- ing, which is becoming a feature this year.”

Round table reports, p22-23


Leading questions

The Labour leadership tussle is likely to have implications for pension reforms

Carr joins Cordea Savills

Cordea Savills has appointed former manager of the ING UK residential property fund Patrick Carr as director of UK Residential.Carr joins the residential team managing the diversified residential opportunities fund, the Cordea Savills student hall fund and the accommodation investment fund for charities.Carr worked for ING Real Estate for seven years spending the last two […]

IFAP service delivers £54m value to member IFAs

IFA Promotion’s ‘Find an IFA’ referral service delivered £54m of commission value to member IFAs last year with a 16 per cent increase in consumer and business enquiries.The independent study commissioned by IFAP found a 15 per cent year on year increase in income and an increase of 270 per cent since 2000.The figures show […]

CII launches online exams

The Chartered Insurance Institute is launching an online exams service to replace the existing paper-based multiple choice exams from January 2007.Under the online system, CII candidates will be able to sit exams at any time whereas at present advisers are restricted to sitting the exam at one of the quarterly sessions. The format of the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm