Why would any true independent financial adviser give up his or her ability to provide impartial advice on all the products of all the companies that make up the marketplace?The answer is higher commission. A multi-tied adviser is first and foremost a salesman, not an adviser, because whole-of-market independence is the only status that facilitates true marketwide advice. As I have asked before, what happens when a client in need of pension advice, for example, asks the multi-tied adviser to provide analysis and recommendations on his existing pension with a provider not on that multi-tied agent’s roster? A good IFA is able to provide answers to all his questions. The multi-tied adviser cannot do this. Faced with such questions, the multi-tied adviser is supposed to own up and confess that he is not authorised to offer any advice whatsoever on any products other than those of his firm’s four or five host providers. In theory, he is supposed to refer the client to a whole-of-market IFA. But how likely is this to happen? In practice, the majority of multi-tied advisers will fudge these questions and look for a way of discrediting the client’s existing plan. How can it be any different? How can Simon Chamberlain or anyone else, come to that, expect us to believe otherwise? Julian Stevens WDS IFAs,
Having a suitable spread of assets is a prerequisite to good portfolio construction.
Alliance & Leicester announces plant to join the buy-to-let market.The bank announced its intention to move into this new market in its half-year trading statement. A&L plans to offer BTL through its intermediary channel.Head of intermediary mortgages Mehrdad Yousefi says: “This news marks an exciting development for Alliance & Leicester Mortgages. While we continue to […]
Zurich has recruited Friends Provident head of protection marketing Peter Hamilton with the aim of increasing its IFA market share. Hamilton joins Zurich as protection management director. His role puts him above protection development manager Gerry Warner, who was brought in from Standard Life last year. He is on gardening leave from Friends Provident and […]
The Sunday Group is introducing an affinity service that will offer financial advice as well as legal, accounting and human resources services to the self-employed.
Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).
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The Government should make it easier for advisers to sell products that blend income drawdown with insurance to meet future care costs, according to former pensions minister Steve Webb. A paper published today by Royal London calls on the Government to introduce policy changes which allow new products to be created that pay for long-term […]
Independent governance committees at big-name pension providers are failing to safeguard the interests of savers and the FCA must take action, fresh research finds. In 2015, the FCA required contract-based pension providers to appoint IGCs to act as champions of savers’ interests. IGCs are required to publish annual reports to increase transparency and encourage comparison […]
The FCA is reviewing the content of its pension transfer specialist examination standard in light of recent issues with pension transfer advice, Money Marketing understands. The regulator does not offer qualifications but it does have a role in setting standards for exams and publishes “appropriate examination standards” guidance. Money Marketing understands a working group, mostly […]