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Swip&#39s Wylie rules out providers&#39 PI subsidy

There is no case for product providers to subsidise IFAs&#39 professional indemnity insurance costs, according to Scottish Widows intermediary & partnership director Robert Wylie.

Speaking to Money Marketing this week, Wylie ruled out provider financial involvement in the PI crisis, saying it would not make commercial sense even if the economy was doing well and certainly not at a time when belts are being tightened across the industry.

Wylie defended Widows&#39 decision to take stakes in listed IFAs such as Inter-All-iance, Berkeley Berry Birch and Millfield although he says it is doubtful that the company would invest directly in unlisted firms.

He says Widows is looking forward to taking advantage of depolarisation by developing additional distribution partnerships but in addition to rather than at the expense of its position in the IFA market.

The company is in talks with a number of potential partners, including financial institutions, as well as retailers and utility companies not currently in the market.

Predicting further consolidation among providers, Wylie says that in a mature market, the top six would control 60-70 per cent of the market compared with the current figure of 30-40 per cent.

He says: “I think it would be well received on the distribution side of the industry. Whether there would be a desire on the provider side to write a cheque to resolve the PI issue, I think the honest answer is no.”

LIA head of public affairs John Ellis says: “I think that is an over-rigid interpretation of the law of agency. If product providers stand to one side and allow IFAs to be hammered out of existence, how are they going to distribute their products?”


Inter-Alliance to slash jobs in restructure

National IFA Inter-Alliance has begun a round of redundancies following the completion of its corporate restructuring programme.Having completed the restructuring programme which saw the firm integrate 87 trading companies to reduce running costs, Inter-Alliance says it has “commenced rigorous rationalisation to significantly reduce the head count and amend our property strategy”.The cuts are thought to […]

&#39Regulation will kill off 20% of general insurance advisers&#39

Bankhall estimates that up to 20 per cent of general insurance intermediaries could go out of business once statutory regulation starts on January 15, 2005.The IFA support services group says one in five firms will fail to meet the requirements when they apply for FSA regulation starting next year.However, Bankhall says the gap left by […]


“I think that the ombudsman decisions are very much loaded in favour of the complainant.I don&#39t think its balanced at all.”Keith Keely,Keith Keely IFA“Yes. I think they have a very narrow view on everything and that is imposed by the regulators.”William Geller,Belvedere Insurance“Yes, to a certain extent. There have been lots of complaints in the […]

Policy panorama

The Money Marketing Online with-profits survey 2003 reveals the vast majority of some major life offices&#39 endowments are now in shortfall.It shows that 99 per cent of Prudential&#39s 210,000 endowments are not on track to meet their target payouts. Of AMP Pearl&#39s 111,451 endowments, a massive 90,702 (81 per cent) are not up to policyholders&#39 […]


Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.


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