Impact of Depolarisation on the UK Wealth Management Market

Table of Contents

INTRODUCTION

What is this report about?

POLARIZATION VS DEPOLARIZATION

What is polarization?

What is depolarization?

Aims of depolarization

Creation of a more liberal landscape

An end to commission bias - the menu

Clarification of independence

Disappearance of the 'better than best' rule

Other changes

The scope of depolarization

Products

Single premium products

Regular premium products

Collective Investments - single and regular collective investments

Advisors

IMPLICATIONS

Holding out

Greater choice

Branching out

Economic analysis

Fees vs commissions

Hidden fees

Commission under pressure

Products

The appeal of packaged products

Mass-market appeal

Distribution

Advisors for sale

Preferred panel

SELECTED CASE STUDIES

Halifax Bank of Scotland (HBOS)

Staying tied

UBS

On the acquisition trail

AEGON

Keeping manufacture and distribution at arm's length

DATA

APPENDIX

Research methodology

Further reading

Datamonitor Global Wealth Service: Reports

Datamonitor Global Wealth Service: Insight Reports

Datamonitor Global Wealth Service: Competitor Tracking

Related Savings & Investments SPP Reports

Datamonitor Financial Services Consulting

SPP writing team

List of Tables

Table 1: Single premium products covered by depolarization, 2004

Table 2: Regular premium products covered by depolarization, 2004

Table 3: Collective investment products covered by depolarization proposals, 2004

Table 4: Number of active financial advisors - individuals - in the UK, January 2002

Table 5: New single premium business subject to depolarization broken down by distribution channel, 2003

Table 6: New regular premium business subject to depolarization broken down by distribution channel, 2003

Table 7: Gross sales of UK unit trusts/ OEICs, 2003

List of Figures

Figure 1: Single premium products lend themselves to distribution by the intermediary channel

Figure 2: IFAs dominate the distribution of the regular premium products included in the depolarization proposals, 2003

Figure 3: Intermediaries dominate the distribution of unit trusts and OEICs, 2003

Figure 4: AEGON is a manufacturer and distributor of life, pensions and investments