IFAs see the transition to a fee based model as their biggest issue says Winterthur survey

28 June 2007

Results from the survey conducted throughout Winterthur’s recently completed ‘A Wealth of High Net Worth Expertise’ national roadshow indicates that nearly a quarter of the IFAs see transition to a fee based model, TCF and working with legislation, as the biggest issues for them over the next two years (23% each). Using e-commerce effectively and new technology (20%) were the other areas that advisers scored highly as key issues they are expecting to have to deal with over the next two years.

Winterthur Managing Director, David Thompson said, “Advisers have a number of regulatory challenges ahead, which is why I believe the research is highlighting the importance of structuring their businesses and also reinforcing the view that successful provider platforms are going to be increasingly about propositions that understand client requirements and work in partnership with IFAs to produce innovative solutions.”

Key Findings:

• Even though the proposed changes to the current tax regime was thought to have killed off ASPs, 67% see some, if limited, use for ASPs in the future despite the impending changes and 17% still see it as a very useful planning tool. This reinforces Winterthur’s view that ASPs are only for a minority but choice in the market is vital.
• Over a quarter of IFAs intend to outsource up to 50% of their fund recommendations to a fund of funds platform over the next two years with 20% outsourcing up to 100% of the fund management decisions.
• Nearly 50% of the attendees at the roadshow said that an increasing number of their clients are the ‘new wealthy’ and that they make up to a third of their client base.
• Advisers view pensions and inheritance tax as two of the main areas where they can increase their business. Nearly half of attendees wanted more information on these areas in order to stay ahead of the increased levels of competition offered by private investment banks and wealth managers.

-End-

For further information:

Paul Riddell Winterthur Life, Press Office +44 (0)1256 798099
Christine Wood FD +44 (0)20 7269 7253

Notes to Editors

About Winterthur Life UK Limited

Winterthur Life UK Limited is part of AXA Group, one of the largest financial institutions in the world.

Winterthur Life UK Limited is a provider of focused investment and retirement solutions and support services predominantly distributed through quality IFAs to their high net worth clients.

The company is recognised as having an innovative approach to financial products and its products feature simple, transparent charging with access to a wide range of carefully selected investment funds and fund managers via its Tailored Selection fund platform. Winterthur is also differentiated in the market through its focus on service excellence.

Winterthur Life UK Limited has a B+ financial strength rating from AKG, which denotes “very good financial strength”. At the end of 2006 Winterthur had assets under management exceeding £10 billion, and grew its new pensions business by 125% to £1.45 billion.