IFA develops divorce offering but turns back on structured products

IFA Brunning Newman Houghton (BNH) has expanded into offering fee-based advice in divorce disputes known as collaborative law.

Collaborative law allows couples to get divorced through a form of legally-binding mediation and BNH has been developing ties with local solicitors to provide impartial advice to couples for a negotiated fee.

To ensure the advice is independent, the IFA plays no part in carrying out any transactions which may result from the advice.

Director of the Sussex-based IFA, David Brunning says the system only works for IFAs who are prepared to forgo commission on transactions.

“If you look at the conventional IFA model, where all the research is leading to the transaction, it doesn’t work,” he says.

“This will only work with the new generation of fee-based IFAs who can say ‘we don’t care about the transaction’.

“The advice is for the benefit of all involved, so we don’t get involved in the implementation.”

Meanwhile, Brunning has delayed the launch of a separate structured product business blaming negative investor sentiment.

“I think at the moment there is such an overwhelming negative feeling that trying to launch a structured product business would require so much time and money,” he says.

Brunning says there are a number of issues that need to be addressed and the industry needs to make further improvements to the marketing and selling of structured products.

“The product builders and packagers need to be more transparent about counterparties. They also need to reduce the complexity of products and improve the way they target products,” he adds.