|
|
UK Independent Financial Advisors 2001Product Type: Market Research ReportPublished by: Datamonitor Published: May 2001 Product Code: R313-0033 Description UK Independent Financial Advisors 2001' looks at the key issues and trends in the UK Independent Financial Advisor (IFA) market. In particular, it illustrates how product providers must position themselves to the IFA market. Distribution is one of the key battlegrounds in the life, pensions and retail investment industries. This report focuses on the importance of the IFA channel in UK financial services and the key criteria that IFAs use when recommending products to their clients. In view of the legislative and structural changes in the UK financial services market, the report looks at how the IFA channel could develop through outlining potential future scenarios and the implications for product providers, IFAs and consumers.Table of Contents INTRODUCTION What is this report about? Who is the target reader? How to use this report ACTION POINTS MARKET CONTEXT Introduction Key findings IFAs in the distribution of life and pensions products IFAs in the distribution of annual life products IFAs in the distribution of single life products IFAs in the distribution of annual pensions IFAs in the distribution of single pensions Pension annuities and income drawdown Pension annuities Income drawdown Group life and pensions Regular premium group products Single premium group products IFAs in the distribution of investment products IFAs in the distribution of unit trusts and OEICs IFAs in the distribution of investment trusts IFAs in the distribution of ISAs and PEPs IFAs in the distribution of other types of ISA Alternative distribution channels Bancassurance Direct salesforce Tied agents Direct CUSTOMER FOCUS Introduction Key findings Key reasons for the strong performance of IFAs Value-added advice Increasingly complex personal financial needs Pension mis-selling/endowment shortfalls - not us! Changes to the structure of product distribution The structure of the IFA market Customer relationships in the IFA channel The IFA as the customer Higher levels of customer service Greater consultation and development of long-term relationships Changes in product distribution Introduction of a standard electronic trading platform Remuneration Selling advice not products Less initiatives, more action Greater product provider staff training The IFA client as the customer Investment performance Financial strength The IFA channel's Top Ten List COMPETITOR DYNAMICS Introduction Key findings Life and pensions providers and the IFA channel Total life and pensions IFA market dominated by the leading ten players Standard Life and Scottish Provident lead distribution of annual life products through the IFA channel Annual life market share through the IFA channel Single life business continues to grow through the IFA channel Single life market share through the IFA channel Standard Life continues to lead IFA annual pensions market IFA annual pensions market remains fragmented Excellent growth for Friends provident in the IFA single pensions market Standard Life lead single pensions distribution through IFAs Attractions for life offices of distributing through IFAs Marketing life and pensions products to an IFA Provider's financial strength Product quality Support and training Brand Investment product providers and the IFA channel Market share of retail investment providers through the IFA channel Attraction to investment products distributing through the IFA channel Marketing investment products to an IFA Financial strength Attractiveness of individual products Support and training Brand THE FUTURE DECODED Introduction Key drivers Current position persists beyond April 2001 Scenario forecasts Pessimistic scenario - survival of the fittest as IFAs face increasing pressures Neutral scenario - steady IFA growth, direct distribution the new threat Optimistic scenario - IFAs become distributors and providers Polarization rules withdrawn Pessimistic scenario - everything goes Neutral scenario - best of both worlds? Optimistic scenario - the strength of independence of advice APPENDIX Research detail Methodology Definitions Life insurance Premium payable in a single lump sum. Premium payable on a regular basis. Individual long-term insurance Corporate pensions Additional contributions paid voluntarily into separate personal pension policies by employees in occupational schemes who wish to top up their pensions, but keep the money distinct from the occupational scheme. Retail investment funds Distribution channels Further reading Bibliography Wider readings Relevant links Contacts SPP writing team How to contact (c) Datamonitor 2000. All Rights Reserved. |
|
||||||||
MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence. |