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What they said in G80 workshops

“The IFA of the future will be a fully time-controlled, cost-driven, professional practice. The bigger distributors will have both and AFA and a smaller (initially) IFA part.

“The AFA will look like second-class citizen.”

“Advice firms have to emphasise ongoing relationships and move away from transactions. They will need IT to support this, service and marketing-orientated.”

“Use of retainers (per month/per year) to lock in clients and spread fees.”

“It is about the advice, not the qualifications but qualifications are an enabler towards better advice.”

“Needs to be consolidation of qualifications and rationalisation under some common descriptors.”

“CFP seems to have caught journalists&#39 eye.”

“Graduates very desirable but difficult due to attrition and competition from life companies,etc.”

“Greater professionalism will require AFPC for IFAs and possibly investment-related mandatory exam within this.”

“No one is addressing the needs of Mr and Mrs Average. Savings dependent on commission to grow.”

“Split between executive (IFA) and employee (multi-tie) advice.”

“New distributors such as supermarkets and international players will emerge. This will grow the overall market.”

“Employee benefit consultants may stay as IFAs but will probably look to possible admin/support responsibility from product provider.”

“Given high-net-worth clients sometimes prefer communication remuneration/favour AFA status, need to offer alternatives such as IFA/AFA regardless of client side.”

“Banks are a serious threat, particularly RBS and Barclays. They have huge training resources and they are having an impact on the high-net-worth market.”

“Should not underestimate banks. Alliances with life offices is giving them more chance of success, they will have the same products as IFAs available to sell.”

“Existing customers have been sold poor-value products in the past and have attached poor name. Banks will not be trusted.”

“Banks will want large margins – will they get them?”

“Clients happy, impartiality more important than independence. Greater ratio of admin staff to advisers in new environment, more professional.”

“Networks will find it difficult to compete with multi-tie life office proposition.”

“Network could build a brand/marketing proposition which members could not build independently or using life office.”

“IFAs may have to be prepared to sacrifice own brand to build or get behind a national brand.”

“Networks should unlock national business as they build a recruitment/training resource.”

“Distribution model should be three-tier – facilitator, adviser, planner – latter being more qualified to operate.”

“Networks can sometimes have an agenda, could product providers change the model to supply pure support services (at a cost) in the future.”

“Do not want support services at all, simply want clean, unbundled products that can have sales marketing costs attached.”

“Smaller players may continue to turn to networks for general support services as the market place becomes more confusing. Product providers may withdraw support from smaller players as it is not economic.”

“Non-product services from providers will become more important.”

“Technology utopia is industrywide system that allows IFA to make, service, sell across the client base and market of providers.”

“IFAs and providers can move in tandem if the providers create an industrywide proposal.”

“Currently too many providers are doing their own thing and trying to differentiate rather than looking at a common approach.”

“Networks cannot push technology too hard too quickly because everybody is at a different place in terms of their use of technology.”

“Need a productivity forum – Aifa or ABI” – everyone saw this as essential.

“Lack of consistency in IFA requirements hinders progress.”

“Need greater co-operation but start with IFA requirements and needs, not providers&#39 needs.”

“Real need for independent (of networks) standardised industry e-commerce platform for new and existing business. IFAs would be prepared to pay for this.”

“No structured approach is perceived other than by networks into building their platforms with providers – communication.”

“As product pricing becomes clearer, quote platforms will become less relevant.”

“Quote requirements are consuming technology efforts and detracting from resources being used to develop capabilities beyond quotes provision.”

“Competing portals should drive down costs and improve scope.”

“Quotes not the real issue, recognition of need to adopt a wider range of single solution covering, end-to-end processing.”

“Exchange FS is better than hanging on phone.”

“AFA was viewed as a reaction to CP121 proposals and allows people to think nothing had changed.”

“If AFA reduces the number of providers you are representing, what are the implications for &#39top-ups&#39 and renewal commission?”

“Feeling that AFA is a soft landing before going either multi-tie or IFA.”

“Small number of manufacturers may lead to more multi-ties by default, serious challenge to work with IFA brand. Need to differentiate the cost of advice



product purchase.”

“Authorised FA seems better than IFA. IFA associated with small bit players, errors of the past. Seen as having more status as AFA. Concern about consumer understanding.”

“It is all down to marketing. AFAs will all multi-tie in the end.”

“Some people like the AFA name, sounds more impressive than IFA.”

“If IFAs/AFAs have wrapper-style products may need less support from providers.”

“The potential market changes as a greater threat to providers than advisers, for example, consolidation giving distributors greater power to negotiate deals/reduce providers&#39 margins.”

“Some IFAs will look to providers to help with infrastructure/capital issues.”

“Relaxing indirect benefits could lead to a &#39supported transfer&#39 of activities between provider and distributor. For example, it may be worth providers remunerating IFAs more if they do more administration, thus reducing the providers&#39 costs.”

“The name should be NIFA (Nearly IFA) rather than AFA.”

“Transitional period AFA to DPS should be lengthy to allow IFAs to evolve (suggested five years).”

“Investment from providers to networks must reach individual members.”

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