Should indemnity commission be abolished?“No. With a fee structure, indemnity commission helps to keep up the level of advice that IFAs can provide.” Andrew Walter Jackson, Egan Roberts Financial Services”No. It is an option for payment. If it is taken away, clients unable to pay fees will not be able to get advice.” Nigel Bracken, The Financial Partnership”No, There are arguments on both sides but, ultim-ately, how commission is paid is less important than clients getting fair value for the advice they receive.” Matthew Saunders, Howe Maxted Group”No. I can only assume that the ABI is trying to pre-judge the FSA. I can see no reason for it and it is not something that the majority of ordinary clients would welcome.” David Leakey, David Leakey Associates”No. We get a smaller amount of commission than we used to anyway and it would mean charging the client through fees to meet the cost of our work.” Tom Rolls, Moneycare Financial PlanningYes although it is a very tough call to make and, to be honest with you, a debate has been started to create a lot of heat. I can see where the ABI is coming from. Ultimately, we are here to service the consumers. An abolition of this commission is acting purely in their interests.” Charles Kimberley, King Investments”Yes. I believe it should. It has encouraged a lot of greed within the industry and caused a lot of the problems that the industry has faced. There has got to be a better way.” Robert Corbett, Simpsons Independent Financial AdvisersYes 25% No 75%
Financial Services Charitable Foundation founder Paul Hogarth is challenging the industry to complete a three-peak 24-hour challenge in June, climbing the three highest mountains in the UK, to help with aid for countries hit by tsunami.
Four months into statutory mortgage regulation and it is just as easy to find non-compliant financial promotions as compliant ones.
Southern Pacific Mortgage Limited announces product enhancements across its entire product range. These include enhanced income multiples and higher lending values. Income multiples up to 75 per cent LTV on SPMLs Prime Product Range (Prime, Prime+, and Prime Buy to Let) and its Light Adverse schemes have been increased to 4 x +1 or 3.5 […]
FRANCIS McGEE Two truths underlie last week’s publication of new research on commission and the launch of ABI’s consultation on options for change. First, is the fundamental importance of advice to closing Brit-ain’s £27bn savings gap. Oliver Wyman’s work for the ABI in 2001 proved that. Securing the widest possible access for potential savers to […]
Vincent Chailley, CIO of H2O Asset Management, discusses the key investment factors in 2016, including volatility, the disconnection between central banks and its implications on markets, as well as opportunities that may exist for investors.
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BMO Global Asset Management fund manager Robert Burdett has more than halved the exposure to passive funds in most of the multi-manager funds amid fears of a bubble in the market. Burdett, who co-manages the £1.2bn F&C MM Navigator Distribution fund with Gary Potter, says the team has been cutting exposure to passive funds across […]
Opinion differs as to what has caused the advice gap. Some believe the move from commission to fees has made advice unaffordable for the mass market, with advisers having to focus on wealthier clients for commercial reasons, while others say the trend was happening anyway, regardless of the RDR. For Simplified Money director Lesley James, […]
Sales of protection policies are back at peak levels, with the sector growing by more than 20 per cent in the past year, despite adviser complaints over protection’s lack of popularity. According to the latest figures from Equifax Touchstone, sales of protection policies surpassed £149m between July and September this year — their highest level […]