Independent Financial Advisors: Market Assessment 2003

Published by: Key Note Publications Ltd

Published: Apr. 1, 2003 - 109 Pages

Table of Contents

2. Strategic Overview

• Market Dynamics
  
• Market Sectors
  
• Current Status Of The Market
  
• Largest Sector
  
• Fastest-Growing Sector
  
• Slowest-Growing Sector
  
• Distribution
  
• Top Ten IFAs
  
• Table 1: The Top Ten Independent Financial Advisers By Turnover And Size Of Salesforce (£M), 2002
  
• Women
  
• Regional Variations
  
• Consolidation Of The Industry
  
• Product Distribution
  
• Table 2: Independent Financial Advisers' Share Of New Business Measured By Ape By Product Type (%), 1998-First Quarter Of 2002
  
• Competitive Structure
  
• Number Of IFAs
  
• Advertising/Client Recruitment
  
• Table 3: Main Media Advertising Expenditure On Independent Financial Advice (£000), Years Ending December 2001 And 2002
  
• Training
  
• Financial Planning Certificate (FPC)
  
• How Is It Achieved?
  
• Details
  
• Advanced Financial Planning Certificate (AFPC)
  
• How Is It Achieved?
  
• Details
  
• Investment Advice Certificate (IAC)
  
• How Is It Achieved?
  
• Details
  
• Certificate For Financial Advisers (CEFA)
  
• How Is It Achieved?
  
• Details
  
• Regulatory Bodies
  
• Financial Services Authority
  
• Association Of British Insurers
  
• Chartered Insurance Institute
  
• Investment Management Association
  
• Polarisation
  
• Commission And Fees
  
• Recent Regulatory Developments
  
• Depolarisation — The Defined Payment System (DPS)
  
• The 'Menu' Approach
  
• Professional Indemnity Insurance
  
• Financial Services Practitioner Panel Survey
  
• Technology
  
• Consumer Dynamics
  
• Trust
  
• Household Wealth
  
• Market Forecasts

3. Insurance

• Background
  
• Structure Of The UK Insurance Market
  
• Household Expenditure On Insurance
  
• Investment Holdings
  
• Distribution
  
• Total Industry Value And Growth
  
• Table 4: General Insurance Business By Gross Written Premium And By Source Of Business (£M And %), 1997-2001
  
• Personal Lines
  
• Table 5: Personal Lines Insurance Business By Gross Written Premium And By Source Of Business (£M And %), 1997-2001
  
• Motor Insurance
  
• Table 6: Motor Insurance Business By Gross Written Premium And By Source Of Business (£M And %), 1997-2001
  
• Household Insurance
  
• Table 7: Household Insurance Business By Gross Written Premium And By Source Of Business (£M And %), 1997-2001
  
• Other Personal Lines Insurance
  
• Table 8: Other Personal Lines Insurance Business By Gross Written Premium And By Source Of Business (£M And %), 1997-2001
  
• Long-Term Insurance (Life And Pensions)
  
• Table 9: Total Individual Annual Premium Equivalent By Gross Written Premium And By Source Of Business (£M And%), 1998-2002

4. Mortgages

• The Housing Market
  
• Regulation
  
• Mortgage Examinations
  
• Issues In The Market
  
• Sub-Prime Lenders
  
• Self-Certification Mortgages
  
• Endowment Mortgages
  
• Market Share
  
• Table 10: Independent Financial Advisers' Market Share Of Mortgages In Gross Advances (%), 1998-First Quarter Of 2002

5. Investments

• Background
  
• Distribution
  
• Table 11: Gross Retail Sales By Distribution Channel (£M), 1997-2002
  
• Table 12: Isa And Overall Sales By Distribution Channel (%), 2000-2002
  
• Peps And Isas
  
• Corporate Bonds
  
• With-Profits Funds And Distribution Bonds
  
• Hedge Funds
  
• Funds Of Funds
  
• Defaults
  
• Table 12: Number Of Firms Declared In Default, April 1994-1995 To April 2001-2002

6. Pensions

• Introduction
  
• The Savings Gap
  
• Saver Summit
  
• Pensions Calculator
  
• Stakeholder Pensions
  
• The Pickering Report
  
• Implications For IFAs
  
• Distribution
  
• Table 13: Sources Of Individual Pensions — New Single Premiums (%), 1998-2002
  
• Table 14: Sources Of Individual Pensions — New Regular Premiums (%), 1998-2002

7. An International Perspective

• Introduction
  
• EU Regulation
  
• Insurance
  
• Macroeconomic Influences

8. Pest Analysis

• Political Factors
  
• Economic Factors
  
• Social Factors
  
• Technological Factors

9. Consumer Dynamics

• Nop Research
  
• Table 15: Summary Of Nop Research (% Of Respondents), 2002
  
• Why People Consult Independent Financial Advisers
  
• Attitudes Towards Independent Financial Advisers
  
• Attitudes Towards Financial Advice
  
• Table 16: Attitudes Towards Previous Sources Of Financial Advice (% Of Respondents), 2002
  
• In The Past I Have Consulted A Tied Agent, With Either A Bank, Building Society Or Insurance Company (S1) 5
  
• I Have Used The Services Of An Independent Financial Adviser Or IFA For Short (S2) 57
  
• Table 17: Attitudes Towards Financial Advice From Financial Services Organisations Or Family (% Of Respondents), 2002
  
• I Would Consult A Bank, Building Society Or Insurance Company If It Offered A Variety Of Other Companies' Products As Well As Its Own (S3)
  
• I Ask Members Of My Family For Financial Advice (S4)
  
• Table 18: Attitudes Towards Financial Advice From Friends And Work Colleagues (% Of Respondents), 2002
  
• I Ask Friends Who Are Not Work Colleagues For Financial Advice (S5)
  
• I Ask Work Colleagues For Financial Advice (S6)
  
• Table 19: Attitudes Towards Consulting IFAs About Life Insurance And Mortgages (% Of Respondents), 2002
  
• I Would Consult An IFA About Life Insurance (S7)
  
• I Would Consult An IFA About A Mortgage (S8)
  
• Table 20: Attitudes Towards Consulting IFAs About Unit Trusts And Equity Investment Portfolios (% Of Respondents), 2002
  
• I Would Consult An IFA About Unit Trust Investments (S9)
  
• I Would Consult An IFA About An Equity Investment Portfolio (S10)
  
• Table 21: Attitudes Towards Consulting IFAs About Tax-Efficient Investments And Pensions (% Of Respondents), 2002
  
• I Would Consult An IFA About Tax-Efficient Investments (S11)
  
• I Would Consult An IFA About Options For My Pension (S12)
  
• Table 22: Attitudes Towards Consulting Financial Websites And Continued Use Of An IFA (% Of Respondents), 2002
  
• During The Next Year I Intend To Seek Advice From A Financial Website (S13)
  
• I Have Used An IFA Before, And Would Use An IFA Again (S14)
  
• Table 23: Other Opinions About IFAs (% Of Respondents), 2002
  
• None Of These (S15)
  
• Don't Know (S16)

10. Company Profiles

• Introduction
  
• Nationals
  
• Bradford & Bingley
  
• Towry Law
  
• Inter-Alliance Group
  
• Hargreaves Lansdown
  
• Hsbc Trust
  
• Networks
  
• Misys
  
• Bankhall
  
• Tenet Group
  
• Berkeley Berry Birch
  
• Burns-Anderson

11. The Future

• Future Of Financial Services Industry
  
• Forces For Change
  
• Technology
  
• Consumers And The Internet
  
• IFAs And The Internet
  
• Regulation
  
• IFAs — Statistical Forecasts
  
• IFA Share Of Market Sectors
  
• Table 24: Possible Scenario For IFA Share Using A Polarised Paradigm (£Bn And %), 2003-2007
  
• Table 25: Possible Scenario For IFA And Multi-Tied Market Share In A Post-Depolarised Industry (£Bn And %), 2003-2007

12. Further Sources

• Associations
  
• Publications
  
• General Sources
  
• Bonnier Information Sources
  
• Government Sources
  
• Independent Financial Advisers

Abstract

With increased competition within the market, the heightened costs of regulation compliance and the emergence of new Web-based technologies, key figures within the financial services industry have argued that IFAs face a bleak future. It is certainly the case that the industry is currently undergoing transformation and that IFAs face insecurity in the short term.

However, Key Note expects that while there will be considerable changes in the shape of the market in the next few years, if IFAs focus on keeping ahead of these new developments and take steps to consolidate and nurture their client base, the IFA market will stabilise well before the end of the decade and IFAs will enjoy a promising future across the range of financial services products.

The Financial Services Authority (FSA), the government watchdog, has increasingly regulated the market. IFAs have strict qualifications to obtain and update, and stringent compliance codes to which they must adhere. However, the FSA has recently been criticised for damaging the market through over-regulation. This appears to have been acknowledged by the FSA, which is taking steps to address the burden of regulation.

Recent regulatory developments strive to make the market more transparent by introducing the 'menu' payment system, whereby all IFAs offer a choice of commission or fees. Many IFAs already work in this way and will not be dramatically affected by the changes. For others, transparency is likely to increase trust and good customer relations. This assessment covers the market, focusing primarily on the UK.

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