IFA hits out at life firms' hunt for 'churners'

Anna Sofat, director of AJS Wealth Management, says such action would be like “taking a sledgehammer to crack a nut” and warns firms to remember an IFA’s loyalty lies with the client. Several life companies are introducing measures in a bid to stem business lapses, including a hit-list of churning advisers and loyalty discounts for pensions customers. But Sofat says it is far too easy for life companies to look elsewhere for the roots of their own problems. “Insurance companies are losing money because they are not very good at managing money,” she says. “They are looking to penalise IF...