Delegates of today's LIA 30th anniversary conference have been told that the 65% market share curren...
Delegates of today's LIA 30th anniversary conference have been told that the 65% market share currently held by IFAs could drop to 20% if the FSA's proposals for de-polarisation go ahead.
The figures were put forward by Philip Scott, Norwich Union chief executive UK life and savings.
"The IFA share of the market has grown during the past decade, but the share of the market now held by direct sales forces or tied agents is represented by quality equal to IFAs. Professionalism is growing all around."
With little difference in quality, the de-polarisation proposals could lead to general distributors and multi-tied agents each taking 35% of the UK market.
Scott added that the shorter term growth in the UK savings market was likely to fall from last year's 10% figure because of the ongoing downturn in the equities markets.
Ruth Kelly, economic secretary to the Treasury responsible for overseeing aspects of the financial services industry, pointed out that the changes on the way should also be seen as presenting opportunitites for advisers.
However, these opportunities would only be available to those willing to adapt their business models.
"CP 121 [the FSA's consultation paper on de-polarisation], Cat standards, and other issues are not a threat to LIA members' businesses," she said.
The need to close the savings gap would, however, make changes inevitable.
Neither Scott or Kelly wanted to predict the possible recommendations due for release through the Sandler review by the summer, although Scott said he would not be surprised if "smoke signals" started escaping before Parliament's summer recess.
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