Barclays Wealth Kick-out

Rollinghome

Cautious_Investor wrote: »

But.....you seem to be confusing the abhorant sales tactics employed by tied agents of banks with IFAs who, on the most part, are trying to do a good job with good quality products.

To be realistic it should be born in mind that the vast majority of IFAs are former salesmen of one sort of another and of course a high proportion of them former bank or insurance salesmen. Many are likely to be working entirely on commission as IFAs or with small salary plus commission.

Because of the mis-selling problems, the FSA is insisting on the ending of commission payments by the investment managers to IFAs by 2013 but we presumably won't see an to end commission being paid to IFAs by the companies for which they work.

Perhaps the main problem with structured products is that they are attractive to unscrupulous IFAs because they provide a way of earning commission from people who don't want risk and would probably be better advised keeping their money in normal savings which don't pay commission.

Cautious_Investor_3

Rollinghome wrote: »

Perhaps the main problem with structured products is that they are attractive to unscrupulous IFAs because they provide a way of earning commission from people who don't want risk and would probably be better advised keeping their money in normal savings which don't pay commission.

Hi

I really do not think that Structured Products are, on the whole, missold by IFAs, I think if you understood a little more about how we are regulated you may agree.

Take for example an IFA firm I know well. For an IFA who works for the firm to recommend a structured product he or she needs to have done the following:

1. Passed an external exam to demonstrate competence in the area of investment
2. Passed an internal exam specifically on Structured Products
3. Carried out a full fact find with the client including risk profiling and proof of the client's knowledge and experience
4. Researched the investment universe
5. Once they have decided that a Structured Product is to be recommended they then need to get it pre approved by the compliance department before the product is presented to the client.

All of the above for 3% commission and no trail commission, when the average case size is circa £10k (a figure given to my off the record by a Structured Product provider).

If an IFA is minded to make a fast buck her or she is far more likely to recommend an Investment Bond, which can pay as much as 7 - 8% initial commission plus the possibility of trail commission.

Add into the mix the fact that most Structured Products recommended by IFAs are of decent quality I hope you see my point.

I would however agree with those who believe that banks peddle poor quality products via their tied agents who indeed prey on those who have high cash balances (the information on which are I would imagine available to the tied agents).

The Cautious Investor

King_Weasel

There is already a thread on this subject which may add to the points made here ("Barlcays wealth 'Defined Returns Plan').

My understanding is that the returns offered are 8.1% or 9.1% pa (uncompounded), depending on the terms.