Virgin is considering offering its products through comm-ission-based IFAs because it believes the industry has cleaned up its act.
The move follows the successful completion of a Virgin One pilot with Maddison Monetary Management.
Virgin One managing director Jayne-Anne Gadhia says consumers need IFAs to guide them, especially using the internet. Although critical of IFAs in the past, Gadhia insists the move is not an about-turn and Virgin has never dismissed distributing through IFAs. She says the two-month trial with Maddison made Virgin realise how professional IFAs are.
She says Virgin's view of IFAs was clouded by the “commission aspect” but the company thinks the industry has “cleaned up its act”. Gadhia believes fee-based advisers are most likely to look at the product above all but says Virgin is prepared to consider link-ups with commission-based advisers.
She says the firm is talking to local and national IFAs about selling the Virgin One current account mortgage. Virgin Direct is looking to sell the Virgin GPP through fee-based advisers.
Gadhia says: “We never said we would not distribute through IFAs.”