FUND LINKS FORUM 2008
Strategies and opportunities
The general health of the offshore bonds industry looks rosy but there are some areas
of concern such as ‘grey markets’ and commission. These, among many others, were
at the centre of the debate at this year’s International Adviser Fund links forum
Leading figures in the offshore
life insurance industry
and world of fund management
gathered in London
to attend International
Adviser’s third Fund Links
Forum in September.
The event, which focused
on distribution strategies for
international life company
products and investment
trends, featured panel discussions
in which issues
facing the international
life insurance market were
debated, including the contentious
areas of companies
operating in so-called ‘grey
markets’ and fund houses
paying soft commissions to
financial advisers.
l Damaged goods
The intermediary round
table saw financial planners
and advisers from IFA,
private client and discretionary
management firms
discuss their use of offshore
bonds and experiences
in the international
market. Participants agreed
that the onshore bond
market had been severely
damaged by the reform of
UK capital gains tax (CGT)
in this year’s budget.
Stephen Tucker, managing
director of The Fry
Group, predicted their continued
use could become
a new mis-selling scandal
unless the financial planning
case for them was anything
less than compelling.
Iain Tait, executive director
of private client firm
and fund manager London
& Capital, said his company’s
experiences with
insurance companies had
been so poor it had bought
its own life office.
Qualifying Recognised
Overseas Pension Schemes
(QROPS) were also discussed.
Tony Shah, of
Christchurch Investment
Management, said that
although they were of
interest, using them was
potentially hazardous
because of uncertainty
about their status amid UK
tax authorities’ apparent
crackdown on schemes
and jurisdictions.
Sam Instone, of AES,
said that people were
already being mis-sold
QROPS through unscrupu-
lous promoters and called
for regulators to do more
to police them.
Graham Barber, head
of financial planning for
Rensburg Sheppards,
spoke about the Retail
Distribution Review by the
Financial Services Authority
(FSA) and the prospect that
advisers that take commission
rather than being paid
fees may no longer be able
to be called independent.
“Getting paid fees for
advice has to be the way
forward,” he remarked.
“That said, I have been
around long enough to hear
the death knell predicted
for IFAs many times, but
we are going to be around
for some time to come.”
l Call for recognition
The MDs’ round table
was opened by Mike
Hemming, chairman of
investment consultancy
Spence Johnson. He
argued that international
life companies should do
more to gain recognition
within their own groups as
being the best way of
OCTOBER 2008 [www.international-adviser.com] INTERNATIONAL ADVISER
feature
accessing new markets.
There was disagreement
over the payment of soft
commissions to advisers,
with Irish Life’s Mark
Maguire claiming that it
was distorting the market.
Others, such as Scottish
Life International’s David
Kneeshaw, said there was
very little that could be
done about it, adding that
his company was pleased
to get any legitimate business.
But he did caveat this
statement by saying that
this did not take account of
the moral argument.
Other participants were
Paul Kennedy, business
development director for
Fidelity FundsNetwork;
Richard Leeson, head of
business development for
Prudential International;
Dean Waddingham, managing
director of Clerical
Medical International;
David Fagan, managing
director of Legal & General
International; and Kevin
Dean, chief executive of
Axa Isle of Man.
On pages 36-38 we summarise
the distribution and
investment sessions.
“
Getting paid fees
for advice has to be
the way forward.
That said, I have been
around long enough
to hear the death
knell be predicted for
IFAs many times, but
we are going to be
around for some
time to come
”
Graham Barber, head
of financial planning,
Rensburg Sheppards
35
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