Seven out of ten product providers say they are unlikely to produce a Sandler suite of ‘lighter touch regulation' products because the margins are simply too tight, suggests research.
A survey conducted on behalf of technology specialists IBM, Chordiant, Business Agility and Morse reveals 67% believe both depolarization and the Sandler suite will have a minimal impact on their businesses as 72% believe the small margins after costs will make such products of little interest to firms.
Indeed, IDL Research suggests lack of trust is now the critical issue based on the response from 89% of contributors but eight out of ten providers (83%) are concerned depolarization will have an impact of distribution.
In particular, providers say they intend to retain their commitment to their existing IFA distribution channel.
At the same time, however, focus group research indicates 71% do not expect Sandler products to increase take-up in the life and pensions market.
Conversely, the demands of the regulations were acknowledged as a major concern, with 66% viewing them as a significant threat to profitability while reducing the cost of “managing intermediaries” is important to 83% of firms questioned.IFAonline
Succeeding co-founder Simon Rogerson
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
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