Fitch warns life cos: Don't rely on IFAs

In a special report on the RDR, the agency said there would be no immediate impact on the insurers' ratings, but predicted distribution would shift from IFAs to "cheaper simplified advice, basic advice or no advice at all". Companies reliant on IFA distribution networks could eventually be negatively affected compared to those which are able to focus on platform or bancassurance, which would fare better. It also forecast a contraction in the IFA market, and consolidation among adviser firms, and said it expected some banks to invest more in their financial advice services. Here is ...