View more on these topics

Wide-angle review needs to focus on the real picture

The day-to-day business practices of almost every IFA in the UK are being challenged by the Treasury-sponsored Sandler review.

In his “consultation” document, the former Lloyd&#39s of London chief Ron Sandler has questioned just about everything advisers do.

The two “observations” – IFAs might argue they are accusations – of most concern are IFAs&#39 lack of investment knowledge and that commission may be skewing the market to the detriment of consumers.

The paper also asks whether both commission and fees should be capped.

There is also unwritten implication that regulation is skewed in IFAs&#39 favour.

The review&#39s potential should not be underestimated. The final draft went straight to the top of the Government for approval. Chancellor Gordon Brown, when he turns his eyes on the IFA industry, however fleetingly, may not like what he sees or what he thinks he sees.

The real worry is the consultation is so widely drawn that it could be used as an excuse for almost anything. Many of the questions asked are so open to debate as to be almost impossible to answer.

The review will still run into the barrier that the public will not pay fees for advice and at least Sandler acknowledges this.

IFAs must respond to many of these accusations, however unfair they feel the terms of reference to be.

Of course, the report could could be kicked into the long grass just like Don Cruickshank&#39s review of banking. On the other hand for IFAs, it might just turn out to be the review to end all reviews.

Recommended

London&#39s West End calls for WELPUT

Benchmark Group and Schroder Property Investment Management have joined forces to offer the West End of London Property Unit Trust (WELPUT).Based in Jersey, the fund is a unit trust aimed at investors who consider property as a safe form of investment.WELPUT will take over the eight properties formerly owned by Benchmark. These include properties in […]

Advisers sign up to sell online benefits package

Online employee benefits software specialist 4th Contact has signed partnerships with 21 IFAs to promote its service, which allows employees to keep track of their benefit packages online. Working Wealth is designed to cut out many of the administrative costs which it is argued prevent small and medium-sized companies from offering flexible benefits to their […]

Scottish Life sales up 22 per cent

Scottish Life new business sales were up 22 per cent EPI for the first half of 2001 to £59.1m from £48.4m. Total pension sales were up 30 per cent £56.7m from £43.6m EPI and employer-based new business grew by 40 per cent to £34.1m from £24.2m. Group pensions increased 17 per cent to £16.8m from […]

Aberdeen rocks split-cap sector

The decision to suspend dividends on Aberdeen&#39s European technology & income trust could send the split-capital investment sector into turmoil. The trust stopped dividend payments on its income shares last week after assets fell to £178m from £400m at its launch in March last year. After subtracting the trust&#39s £164m of bank borrowings, the fund […]

Is volatility dead? No, sell credit

There are several arguments that one could currently make for why credit markets look unattractive. These include signals that the US economy is in late cycle, the fact that corporate leverage has been increasing (with 2016 setting a record for the amount of global bond issuance), and that US high-yield default rates have risen considerably […]

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