View more on these topics

Whitechurch aims at bigger IFA firms

Whitechurch Direct is looking for business from bigger IFA firms and says it can undercut SimplyBiz by 40 per cent for firms with a turnover of more than £210,000The firm says both of the support services companies’ fees are similar for IFA firms with an annual turnover below £210,000 but for claims that for companies with bigger turnovers, the difference is significant.

Managing director Ian McIver says Whitechurch’s fees for companies with a turnover in excess of £210,000 are capped at £4,800 and he claims that SimplyBiz’s comparable rate would be over £8,000.

He says: “There is nothing more you can do once you start getting into higher amounts. Whether a firm is writing £200,000 or £1m of business, the amount of compliance does not increase that much more. The cost is what you feel you need to set it at.

“Networks are generally more expensive as you need to factor in supervisors but as our service is largely web-based, the extra costs are reduced.”

SimplyBiz managing director Ian Thorneycroft says: “We cap our charges at £577 a month, linked to inflation. We cannot bring our £8,000 down as we know what it costs to service clients turning over that level of business. I would ask though if they are planning to guarantee that rate for life.”

After carrying out a review of the business, McIver says Whitechurch will now place a much greater focus on its direct offering after previously focusing on its network. It will not look to secure FSA authorisation for its directly regulated arm, like rivals such as Tenet have recently done.

He says: “I cannot see why you would authorise compliance services when they take no liability and are not conducting regulated business. I think this is a fad.”

Recommended

Go to work on an ego

The line-up of fund managers for Skandia’s UK best ideas fund is now unveiled and it is time to see whether this galaxy of stars can shine as brightly as their awesome reputations suggest

Zurich launches discretionary discounted gift trust

Zurich’s investment arm Sterling has launched a new trust giving investors more choice and flexibility on inheritance tax planning.The group says the Sterling Discretionary Discounted Gift Trust (DDGT) has been introduced in response to recent changes in the taxation of some trusts.Changes to the beneficiary can be made at any time during the trust period, […]

Auction for mortgage leads

Mortgage brokers can bid for leads under a scheme developed by Paaleads.com.

Release failing to reach owners’ children

Equity-release advisers admit it will be difficult to target elderly people forced to sell their home to fund care. Key Retirement Solutions business development director Dean Mirfin says the problem is that when someone is about to go into care, it is his or her children who make the financial arrangements and it is hard […]

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment