View more on these topics

Top consultant warns of multi-tied cartel

The introduction of multi-ties would create a cartel of providers, leading to a disastrous reduction in competition and higher prices, according to leading consultant Bacon& Woodrow.

B&W, which has advised the FSA on league tables, FSAVCs and warns if the FSA and the Treasury permit multi-ties, they will allow a handful of providers to corner the market.

Aifa has backed up B&W&#39s warnings. Director general Paul Smee believes the London Economics&#39 report on polarisation dramatically underestimated the importance of the IFA sector in allowing new entrants to get established.

B&W associate Icki Iqbal says it is important for there to be a proper independent sector and to change this would be a detriment to consumers.

Iqbal has backed Money Marketing&#39s Poles Apart campaign&#39s demand for a public debate so all parties affected by the decision would have the opportunity to make their opinions heard. He says the regulator must start to listen to those it is regulating.

The warning comes as it emerges the FSA has sent a top-level team to meet product providers face to face. Providers fear the regulator is unhappy with their initial responses to the polarisation consultation which mostly backed the status quo or suggested only limited changes.

The FSA team, which includes head of investment business David Severn, FSA consultant and former ABI head of life insurance Richard Hobbs and investment business associate Patricia Worthington, has been in Scotland this week meeting life offices.

Iqbal says: “Every time regulators have taken a decision in the interests of consumers, the effect has been the opposite. Multi-ties will be anti-competitive, it will create a cartel. If you end up with only five to six players, prices will go up and customers will suffer.”

Smee says: “The existence of the IFA sector makes it easier for new players to enter the market. We raised this point to London Economics who dramatically underplayed the possibility in their report.”

Recommended

Fidelity nurses healthcare

Fidelity Investments new Healthcare fund is a Luxemburg-domiciled Sicav and is a sub fund of a range of Fidelity funds.Healthcare is aimed at experienced investors who are looking to invest in the general healthcare market and who are prepared to put up with medium to high levels of risk.The fund will invest in companies around […]

ABI pleads for IPA relief as funds get exemption

The ABI and Autif have locked horns over tax concessions for individual pension accounts, with the ABI claiming the Government has handed fund managers an unfair advantage.But Autif says the Treasury&#39s concession on stamp duty reserve tax on IPAs levels the pension playing field.The tax exemption of IPAs invested directly into unit trusts and Oeics […]

1

A nightmare on Endowment St

The bad dream continues for life offices as the endowments crisis shows no signs of letting up. Life offices simply cannot seem to shake themselves awake from the endowment nightmare. The bad dream is set to continue as Money Marketing recently revealed that 40 per cent of the 10 million letters going out to consumers […]

Conservatives advocate state funded pension for young people

The Conservatives are calling for a state funded pension alternative in its pre-election manifesto launched this week. In a speech, party leader William Hague says he wants to give young people real choice about how to save for their retirement. He says under a Tory Government the basic state pension will remain, but the plan […]

Guide

Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com