View more on these topics

Thoresen says FSA must give incentives to stop churning

‘Reward well-run businesses which safeguard customers’

Aegon chief executive Otto Thoresen says the FSA must be prepared to deliver rewards for well-run businesses if it is going to solve the industry’s problems with churning.

He says the FSA, whose chief executive Sir Callum McCarthy recently attacked the damaging “merry-go-round” of commission, should look at how it can encourage advisers and providers to change their ways.

Thoresen agrees with McCar- thy’s assessment that the industry needs to find a new supply chain model to serve consumers better and says he hopes it will galvanise the industry into making improvements. But he says the regulator should be more proactive in focusing the industry’s efforts.

He says the FSA should look closely at how its principlebased regime can be used creatively to offer lighter-touch regulation to firms operating a well-run business model.

Thoresen says tackling the supply side on its own will not have a significant impact and lasting progress will only be made by giving more atten- tion to areas such as financial capability.

He says the FSA’s current commitment of 20m to the issue is not enough and more is required from the industry and Government in terms of funding and making sure money is spent wisely.

He says the work needs to produce wider public acceptance that advice has a value and should be paid for, whether through commission or fees.

Thoresen says: “Sir Callum must be prepared to put the regulatory model on the table at the same time so we can look for regimes which reward well-run businesses and new models which safeguard customers.”


Final nail in the coffin

The headline, 3bn review for contracting out (Money Marketing last week), must have caught the attention, if not caused clinical depression, for many in our profession. In the same week, I have celebrated with my stepson claiming 880 windfall shares in Standard Life (worth currently some 2300) awarded as a result of setting up a […]

PPF tells trustees not to copy its derivatives strategy

The Pension Protection Fund plans to diversify its investment portfolio and improve its returns through the use of derivatives. Its latest statement of investment principles reveals a marked shift away from the current 100 per cent bond investment strategy to include equities and property. It plans to hold 50 per cent in global bonds, 20 […]

Insight looks to Continent with euro fund

Insight Investment is looking at increasing sales of its multi-manager absolute return product range to the Continent with a euro-denominated global diversified return fund. The Dublin-domiciled fund is the firm’s second retail absolute return fund. The first – the diversified total return fund – has achieved a total return of 10.3 per cent since launch […]

Revenue clears the way for IHT advice

Skandia believes the latest HM Revenue & Customs clarification on the Finance Act changes to inheritance tax and trusts should give advisers the confidence to recommend the products again. Head of tax and financial planning Colin Jelley says advisers need to be aware of the latest developments to ensure they are offering cli- ents best […]


Guide: what you need to consider for your auto-enrolment project

In this guide, Johnson Fleming reveals what items you need to understand to gauge the impact of auto-enrolment on your business. The guide focuses on: the impact that your auto-enrolment scheme will have on you; assessing your workforce; understanding your staging date; reviewing your current provision; and modelling contribution levels and costs.


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