Consultancy Practiv has made new statements on its view of the future of distribution of financial products and the role of IFAs in the market.
The company repeats figures suggesting independent “whole-of-market” and multi-tied businesses will each take about a third of the market.
IFAs will offer a “high value, menu-based client service”, which will require providers to adopt a more flexible approach to distribution relationships and acceptance of lower margins.
IT will form a major part of the overall solution to managing businesses in the new environment, but it will have to be applied in a way that truly does improve efficiencies.
Genuine ecommerce platforms will be those that support true end-to-end processing, with extranets tweaked to enable IFA access from either desktops or network portals.
Practiv non-executive director Paul Smee – also director general of AIFA – is quoted by the company as saying providers relying on independent distribution in future must ensure their proposition does not leave the IFA stranded with poor support, as IFAs will have less time than ever to rectify such situations.IFAonline
Warns on profits
Hargreave Hale seeking legal advice
Latest news and analysis
First mentioned in Cridland Report