Fitch warns life cos: Don't rely on IFAs


Ratings agency Fitch has warned that life companies which rely on independent financial advisers (IFA) to distribute their products could be negatively affected by the retail distribution review (RDR), and predicted a bright future for bancassurance.

In a special report on the RDR, the agency said there would be no immediate impact on the insurers' ratings, but predicted distribution would shift from IFAs to "cheaper simplified advice, basic advice or no advice at all". Companies reliant on IFA distribution networks could eventually be negatively affected compared to those which are able to focus on platform or bancassurance, which would fare better. It also forecast a contraction in the IFA market, and consolidation among adviser firms, and said it expected some banks to invest more in their financial advice services. Here is ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes



Already a Professional Adviser member?


More on RDR

RDR ten years on: An advice industry changed for the better

RDR ten years on: An advice industry changed for the better

'The end of the advice industry as we know it'

Kevin Silvester
clock 08 February 2023 • 2 min read

Deja vu: Are we heading back to the future on commission?

Marty, fire up the DeLorean

Tim Sargisson
clock 13 January 2016 • 3 min read

Blog: How can we shrink the advice gap?

The advice gap has been a popular topic since the Retail Distribution Review, but hasn't this gap always existed?

clock 02 November 2015 •