A new ILAG committee has been set up in a bid to tackle distribution problems in the life market
Representative body the Investment and Life Assurance Group (ILAG) has set up a new committee ' which includes IFA members ' to look at distribution problems in the industry.
According to ILAG, the committee will include representatives from all distribution channels, including direct distributors, online marketing specialists, direct mail marketers, bancassurers and retail providers from the high street in addition to IFAs.
The main aim of the committee will not be to lobby, but to help resolve potential conflicts between distribution methods. The group also aims to identify and debate emerging best practice in distribution of financial services.
ILAG committee chairman Phil Smallwood, said: 'Our objective is to extend the attraction of ILAG from our traditional focus to issues concerning IFAs, as we now believe the future will lie in this distribution channel.
'As far as we are aware, there is no other industry forum bringing together all financial services distribution paths at practitioner level. The committee is an important development for ILAG, but will not be a lobbying organisation. It will aim to work collaborating with others in our business and the Government to ensure that distribution issues are taken into account and best practice is promoted.'
Issues that will be put to the committee include the impact of regulation and developments in technology on distribution channels. A committee meeting has already been held, discussing the impact of polarisation. According to Smallwood, the committee will meet every two months to discuss different issues. The outcomes of meetings will be given as feedback to regulatory bodies and used to create formal responses to industry papers.
'Face-to-face advice has taken a bashing lately and there has not yet been any research into what effects regulation and the development of new technology will have on IFAs. The committee contains representatives of all distribution channels and we hope to debate some important issues. The committee's first seminar on polarisation proved to be a lively and controversial debate,' Smallwood added.
