IFA Jobs…

…are all going to be effected moving forward, due to various factors, not least, due to RDR, TCF, but also due to mergers and acquisitions of Insurers, Life Offices, Bancassurers & the rising cost of PI Cover, due to exchange rate fluctuations.

 

The FSA are the one’s in the spotlight this week, their being scrutinised by the Treasury Select Committee over their role in implementing the Retail Distribution Review (RDR), the Treating Customers Fairly Initiative and amongst over things, regulation of the Retail Banking Sector, a very crucial issue, especially in this day and age. I’m going to be very interested in their findings, as these factors have directly effected the way that IFA’s have carried out their roles, the perception of Bancassurance Financial Advisers and IFA Jobs themselves within Financial Services.

 

Apparently, according to Just Retirement Solutions and their research, nearly a quarter of pensioners retiring, retire in debt. Many have to, due to depleting income and rising fuel costs, either live on the breadline, or have to work to supplement their Pension income. I’d of thought they would need advice from firms that specialise in Equity Release and other methods to supplement their retirement planning. I think the one good thing about current times, is that people are realising that they really need Financial Planning & Independent Financial Advice well beyond retirement, and when we do move through RDR,TCF etc.. to wholly Fee Based IFA Practices, a new era will dawn for IFA jobs and careers, because people need decent, prudent advice all through their lives.

 

Analysts, Keefe Bruyette & Wood have forecasted that the Prudential will become the biggest insurer in the next five years. This giant Life Office, according to these analysts mentioned above, are in a great position to acquire AIG’s Asian business at a cheap price and overtake over Life Offices/Insurers such as Axa, Allianz, Swiss Re etc…, and reach top spot by the 2010’s. Great forecast, and if the Pru have a good IFAs, Brokers, and Bancassurer Financial Advisers to sell their products through, this might add to their success!

 

Zurich Financial Services, have completed its acquisition of NASTA Insurance Company for a modest £137 million (a mere snip!).I think Zurich maybe a rival to the Pru in the previous paragraph, and the Zurich Retail Insurance Group,is now the largest foreign controlled G.I firm, as it operates in an international brand in the Russian market. I stand by my theory about when all the smoke settles, there will be a small number of giant Bancassurers, Life Offices, Insurers and maybe IFA Practices offering fee-based financial advice to customers, they’ll all become Financial Services Oligopolies and this I think will all reduce the amount of IFA jobs out their in Financial Services.

 

Fascinating article in Money Marketing, tating that Professional Indemnity cover may rise for Brokers and people in IFA jobs, as the value of the Pound falls against the Euro, according to PYV. Managing Director, Neil Pointon rightly pointed out that PI cover has risen to 1.5m euros creating a pound equivalent £1.3m, compared to £1.15m 12 months all due to a weaker pound. This is because the pricing of PI Cover is set by a Euro Directive. This is a direct factor for IFA jobs going forward, as the market gets harder, every little penny will count towards the longevity of IFA businesses into the 2010s. This definately needs to be looked into, and I don’t think the FSA should pass the buck on this issue.

 

In short, I think the future is bright into the next decade, as consumers recognise the benefits of prudent, sound advice whether it comes from a regional or national practice, I just hope that professionals in IFA jobs get all the support in terms of PI, RDR etc… to face those new challenges ahead.We wait the coming week with baited breathe!