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Lighthouse Group ventures into simplified advice after Unison deal
by Alex Steger on Jul 20, 2010 at 07:00
The Lighthouse Group will launch a simplified advice proposition and boost its adviser numbers after signing an exclusive deal with trade union Unison to provide advice to its 1.3 million members.
The group will offer a direct to consumer telephone-based service to members of the trade union as part of a three-pronged proposition.
Lighthouse Group joint chief executive Malcolm Streatfield (pictured) said he anticipated demand from Unison members for a simplified advice service.
'We appreciate there will be significant numbers of Unison members who want simplified advice and we need to gear up to that,' he said. 'Customers' requirements change over time, and rather than say we can’t deal with clients' needs because they are too basic we will offer a service.'
As part of the deal with Unison, Lighthouse Group will provide advice when the trade union negotiates pre-retirement plans and redundancy payments with employers. Streatfield said these negotiations were likely to occur frequently given the expected cuts in the public sector.
The IFA network's advisers will in addition offer financial advice and planning to individual Unison members.
Streatfield said the Unison deal was the result of hard work by the group over the last three years and signalled its intention to grow into the middle market advice space post 2012.
‘It’s all about relationships, having the right people on the ground. This is relationship based; this is the conclusion of three years work where we’ve proved to them what we can do,’ he said.
‘We want access that middle space, where there are many thousands of people in need of proper financial advice.’
Streatfield said Lighthouse had 250 advisers conducting 900 seminars and 20,000 appointments a year and would be looking to grow adviser numbers to support its Unison commitments.
‘There’re clearly positions for more advisers who want to help us deliver the service. They must be of the right quality,’ he said.
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5 comments so far. Why not have your say?
Eugen
Jul 20, 2010 at 10:27
That's a great idea keeping in mind the oncoming RDR. 1.3 million saved from the banks and "down the pub" advice. I am only interested how Lighthouse is going to "factor" the "advisor charging" (the advisor needs to be paid) for ISAs monthly contribution as lump sums will be few and far between. Probably they will issue new shares on AiM to raise capital but last time when I looked they were down to 7.5p/share. Or they will push protection products to get commission although you may argue that Unison members are not the worst protected. It is what FSA is dreading, isn't it ?
Now I am waiting for the "internet-based solution" for simplified advice that FSA is telling us about. Probably no need for an advisor qualified at level four as the computer "can do everything". Any takers ?
Anyway is a step forward.
report thisMichael Malkiewicz
Jul 20, 2010 at 16:20
it is a huge step forward to prevent a massive section of the community becoming prey to second class advice. Well done Lighthouse!
report thisstuart white - Zone Financial
Jul 20, 2010 at 18:03
Yes well done Lighthouse Group. I hope that Unison members benefit from impartial advice putting the member's best interests first.
report thisUnison Member
Jul 20, 2010 at 22:22
I am a Unison member. Are Lighthouse saying that I am simple? Why can't I have the proper advice that they give to their non simpleton clients.
report thisDave Greenhill
Jul 27, 2010 at 15:24
To Unison member:
Are you for real?
The bottom line is that both this and the previous government want you to pay substantially for substantial advice.
If you are prepared to pay for proper and professional independent advice, then you do not need Lighthouse. You simply need a good IFA.
If you are not prepared to pay substantially for substantial advice, then you won't get any.
Your problem (and the problem for all consumers) is that you will neither have the experience or knowledge to distinguish between proper, professional, independent advice in a professional IFA's office and simple advice from simply a telephone salesperson.
The system is a mess and is about to get worse.
The loser is the average consumer who might not be able to afford full fees for a full service.
Relate that to a car's MOT. If the choice was either an MOT where the brakes are tested and costs money, or an MOT where they are not and is free, which should someone choose?
In both cases the car will probably run ok, until there is a potential crash.
Well, it's the same with financial planning and financial health checks.
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