Respondents to the Aifa poll on including multi-ties in the trade body could never have imagined that their under-representative responses would ignite such fervour.The multi-tied provider of any financial product is to consumer benefit what low-budget airlines are to the Euro-traveller. The price may represent value for money but the destination is more often than not a B-list airport some distance from where you want to be and the performance and service is underwhelming. Multi-ties are not about choice. They are about making money. Nothing wrong in that, IFA-oriented businesses lose money too. I can think of several independent mortgage businesses who struggle but mainly because their management teams fit one of two profiles. The first is the Last Of The Summer Wine brigade – yesterday’s managers pursuing yesteryear strategies, offering nothing new or radical. The second group are more like modern-day US evangelical preachers – “bring your clients, follow us, and jump on board Mr brother consultant”. Commercial competitiveness is starting to eat away at the moral high ground which the independent practitioner has long cherished. The UK mortgage market is down by almost 20 per cent this year. Next year, it could be another 10 per cent. Lenders are not going to wave white flags. Instead, they are going to circle wagons and turn an informal cartel into a more interactive one. In their sights will be the brokers who are having to churn their back books, partly because the purch-ase market is still subdued but also under a TCF diktat, it is the right thing to do. The multi-ties are coming. Bradford & Bingley will be the first behemoth to shrink its panel but by the end of 2006 but it will not have been the last. For the indepen-dents, the commercial pressures encour-aging multi-ties will save them. New entrant lenders will not stop coming, at least in the non-conforming sector which in three years time will surely include lenders with some prime-centric products of their own. Product supply must not be allowed to contract. Advancing multi-tieism makes a complete mockery of providing consumer choice and protection.
Taxation There are a number of different ways to lower IHT bills while avoiding the Poat, says Simon Hildrey
Skandia Investment Management has established a multi-manager ethical fund that combines manager of managers with funds of funds approaches.
The article headlined, Thinktank calls for consensus to cut out ABI and TUC views, October 13, seemed to imply that the IPPR believes in cutting out the ABI and TUC from the pension debate. You cannot and should not exclude anyone from the debate. The IPPR had argued that any consensus on pensions was likely […]
In my last article, I outlined some of the features of different classes of Government bonds and corporate bonds. I concentrated particularly on projections of investment returns from investment funds holding each of these classes, noting their performance in recent years and the sources of information which might guide our thoughts as to future trends.
Steve Webb, our Director of Policy and External Communications, considers the new Lifetime Isa When the Green Paper on ‘Strengthening the Incentive to Save’ was published last summer, we thought the 2016 Budget might be a momentous one for pensions. Radical reform to pension tax relief was on the table, with the lead options including […]
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It is likely the increased regulatory scrutiny on fund managers’ value could filter down to advice firms in the future In my last article, I considered the influence a non-executive director could have in challenging an advice firm’s business model in light of the pension transfer issues. Now, in its asset management market study final […]
The financial services industry has failed to find ways of nudging consumers to think about their options at retirement, despite three years of pension freedoms. A panel at the Association of British Insurers retirement conference today lamented the way companies talk to people about pensions and the lack of engagement it inspires. ABI director general […]
The new chief executive of the single financial guidance body can expect a salary of £175,000 a year, according to a job advert posted online. The advert, posted on the Cabinet Office website says applications will close in mid-May with final interviews held in early July. The date for announcing the successful candidate has not […]