View more on these topics

Tied sector faces equivalence

Banks and tied agents will have to disclose commission equivalence, according to the FSA&#39s menu proposals which were released last week.

The move comes despite heavy lobbying by the tied sector, which was broadly reluctant to have to reveal how much it pays advisers.

The FSA has identified five types of advisers and is determined to make the tied sector disclose commission equivalence, which includes any payment they receive from product providers.

Product providers&#39 representatives, including the bancassurance sector, will have to disclose commission equivalence.

However, a company which is owned to at least 50 per cent by a provider, or a firm with the same owner as a product provider must disclose the greater of commission equi- valence or commission.

The other three types of more loosely tied agents will only have to disclose commission rather than commission equivalence.

These groups include adviser firms that are not whole of market but which are less than 50 per cent owned by a product provider.

Scottish Widows intermediary and partnership director Robert Wyllie says that after four-and-a-half years of talking about depolarisation it was important for tied and multi-tied agents to have a base to move on from.

He says since the new proposals, the sector needs to move beyond the bancassurance versus IFA debate in terms of pricing and decide how the different channels will operate.

Wyllie says: “We will be working on the premise that tied will move forward with commission equivalence. The stake is now in the ground and it is time to use the menu as a way to sell the quality of advice process no matter where it sits in the framework.”

Aifa director general Paul Smee says: “Clearly, when there is a greater choice between different parts of the market, we feel strongly there should be transparency across the whole of the market.”


IFA chiefs&#39 pay falls by 20% at big companies

The directors of big IFA businesses have seen big cuts in salary and bonuses compared with general brokers, according to a report from IMAS corporate advisers. The annual report compares the fortunes of the top 200 general and life distributors in the UK based on company accounts. Directors of big IFAs with turnover above £10m […]

Skandia profits surge and assets reach record £16bn

Profits at Skandia UK leapt by 121 per cent to £158m last year from £72m in 2002. Assets under management inc-reased by 30 per cent to a record £15.8bn from £12.2bn. Skandia&#39s overall life and pension business fell by 1 per cent from £361m to £365m. The company&#39s share of the IFA market increased from […]

Investment Trust Isa sales down 35 per cent

Purchases of investment trust Isas through investment trusts and their managers sunk 35 per cent in 2003 according to the latest statistics from the AITC. Isa sales fell to £61m in 2003 from £93.2m in 2002. The total purchases of Isas through investment trusts and their managers in Q4 2003 decreased 2 per cent to […]

Interested Parties

Having set the scene on trust reform, let us look at those proposals that are likely to have greatest impact on the everyday life of financial advisers. Solutions involving trusts will be applicable to estate planning, business insurance, family protection, pensions and investment planning. Existing trustees may also be targeted as a potential source of […]


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