28 March 2008
Most IFAs agree that Customer Agreed Remuneration (CAR) will be important in their business dealings with solicitors and accountants, a Winterthur survey has found.
The survey1 was conducted at two successful Winterthur Chambers conferences, which are designed to help advisers build professional partnerships between advisers, lawyers and accountants. The conferences provide an opportunity for discussion on areas of mutual interest including, most recently, gathering opinions on Customer Agreed Remuneration (CAR).
When asked how important CAR is when working with solicitors and accountants, 95% of IFAs said that it was either 'very' or 'fairly' important to their business, with 81% stating that it would help to demonstrate their independence from providers, reducing the perception of provider bias.
Further, 65% of IFAs said that if CAR was introduced it would help build trust with clients and 69% said it would help promote the value of their advice – all of which will help improve consumers' perceptions of financial advisers and the industry as a whole.
Additionally, CAR may well increase business for IFAs, as recent research by statistical services company CRA International for the ABI2 found that 5% of existing customers would invest more money and 15% would visit their adviser more often.
Emerging as one of the key concepts from the FSA's Retail Distribution Review, CAR has been widely discussed as a simpler way of determining remuneration for consumers, and will also impact on IFAs and perceptions of the industry.
Nick Lee, head of marketing and value added services, Winterthur says: "With our continuing focus on Treating Customers Fairly (TCF), Winterthur welcomes clear communication and processes for customers to help them make informed decisions. By holding regular educational forums for discussion with the financial community, we can work together to help remove barriers for consumers and improve the professional perception of the industry."
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For further information:
Paul Riddell, Press Office, +44 (0)1256 798099
Becky Holmes, Press Office, +44 (0)1256 798310
Christine Wood, FD, +44 (0)20 7269 7253
Notes to Editors
1 The survey was conducted amongst 103 IFAs during January – February 2008.
2 http://www.abi.org.uk/BookShop/ResearchReports/CRA%20Final%20CAR%20Report.pdf ABI research paper 6: Customer Agreed Remuneration Research into the market impact of encouraging Consumer Agreed Remuneration. January 2008
Chambers conferences
Building professional partnerships is vital for IFAs, and Chambers conferences can provide a forum between financial advisors, lawyers and accountants to discuss the various issues they face. Further workshops and Chambers conferences will take place later in the year.
Winterthur Life UK Ltd
An AXA UK company, Winterthur Life UK Limited is a specialist producer of wealth management solutions to the nigh net worth marketplace. .
Winterthur Life UK Limited provides focused investment and retirement solutions and support services predominantly distributed through quality IFAs as part of AXA Life's AXA & Winterthur Wealth Management business proposition.
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, which was reflected in the company winning Company of the Year and two Five Star service awards at the Financial Adviser Service Awards 2007.
Winterthur Life UK Limited is authorised and regulated by the Financial Services Authority.
www.winterthur-life.co.uk
AXA
AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. IFRS revenues amounted to €94 billion for the full year 2007.
The AXA ordinary share is listed on Compartment A of Euronext Paris under the ticker symbol CS (ISIN FR0000120628 - Bloomberg: CS FP - Reuters: AXAF.PA). The American Depository Share is also listed on the NYSE under the ticker symbol AXA.
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