SIFA puts members onside
The Society of Independent Financial Advisers (SIFA) has managed to put all its members on side by changing the rules of the organisation regarding their relationship with product suppliers.
Tuesday, May 23rd 2000, 12:00AM
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The Society of Independent Financial Advisers (SIFA) has managed to put all its members on side by changing the rules of the organisation regarding their relationship with product suppliers.
A number of members have been in breach of the rules because they now belong to groups that impose some sort of production target.
For instance members of the Portfolio Group have to put a minimum amount of new unit trust business into Armstrong Jones funds.
Under the association's rules advisers have to be independent of fund management and life offices, and they have to be able to offer clients a range of products from different providers.
SIFA members have not been allowed to have production targets or tied agency arrangements.
Out-going chairman Evan Still says members agreed, at their annual meeting in Hamilton on Friday, to change the rules of the association to allow advisers who have some agreement to provide a certain amount of business to one organisation to remain members.
Although the issue has caused heated discussion amongst the 45 member organisation the changes were passed unanimously.
Still says there is a line between remaining independent, and being truly tied to a fund manager or life office.
He says advisers can belong to SIFA if they can demonstrate they are free to offer clients a range of products.
The changes acknowledge the developments that have taken place in the financial planning industry over the past few years, and the emergence of new technologies and the distribution groups.
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