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Survey reveals that IFAs fear disruption from complexity

More than half of IFAs believe the menu will cause significant disruption to their business, according to the most recent Money Marketing online survey.

The survey of 341 IFAs, immediately after the release of the FSA&#39s menu plans last week, has given weight to industry claims that the menu is overly complex and will be difficult to implement. Fifty-seven per cent say it will disrupt their business.

The survey has also cast doubt over the effectiveness of the new framework for depolarisation, which is designed to make financial services more transparent and to encourage consumers to scour the marketplace.

Sixty-four per cent of IFAs believe that the menu will not motivate consumers to shop around for financial advice, which is one of the prime objectives for the document. IFAs are split on whether fee-based advisers should compare their fees against the market average, with 51 per cent for and 49 per cent against this plan.

The Jelf Group business development director Brian Lawless believes that implementation of the menu will cause ongoing problems for advisers. He says the addition of non-mass market products and frequent changes of published market average commissions will cause perpetual debate and confusion. He says: “The whole thing is needlessly complicated and will leave consumers none the wiser.”

FSA spokeswoman Louise Buckley says: “The menu&#39s main objective is to make it clear up front to consumers what the cost of advice is and to facilitate shopping around and negotiation by consumers. It should also help to reduce the potential for commission bias.”


Friends sees menu at risk of failure

Friends Provident believe the long-awaited Menu is attempting to achieve too much. It believes the Menu is an improvement on the Defined Payment Scheme originally proposed by the FSA but thinks expectations are unreasonably high. Friends Provident director of marketing Graham Harvey says: “Using the Menu as a tool to help address product and provider […]

HBOS nears target for investment products

HBOS says it is closing in on its goal of being number one for sales of investment products in the UK in its 2003 preliminary results, which show a 29 per cent increase in profit and exceptional items to £3.89bn from £3.06bn in 2002. It has also pledged to tighten its lending criteria. The five […]

Tied sector faces equivalence

Banks and tied agents will have to disclose commission equivalence, according to the FSA&#39s menu proposals which were released last week. The move comes despite heavy lobbying by the tied sector, which was broadly reluctant to have to reveal how much it pays advisers. The FSA has identified five types of advisers and is determined […]

Axa IM appoints two new fixed-income fund managers

Axa Investment Managers has appointed Gareth Isaac and Jamie Grant as fund managers on its fixed-income team. Isaac, who joins from Newton Investment Management, will assume responsibility for running multi-currency and liquidity portfolios while Grant &#45 formerly with the Commonwealth Bank of Australia &#45 will focus on credit derivatives. Both will report to UK head […]

Is this the endgame for the current mergers & acquisitions boom?

Last year, worldwide mergers and acquisitions (M&A) rose to an unprecedented $4.7tn, according to Thomson Reuters, a 41 per cent increase over 2014. Anthony Forcione, senior equity analyst at Loomis Sayles, an affiliate of Natixis Global Asset Management, looks at what’s been driving this particular wave of mergers. Click here to view full article: Loomis-Sayles


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