4 thoughts on “Hansard’s Bahamas move branded ‘disappointing’”

  • stewartmassey@hebdenconsulting.com says:

    I guess they’ll get some serious new business levels from the ‘worlds largest financial advisory’ company as commission disclosure is unlikley to be helpful for them either. This must be a worry for the IOM providers, although they can look forward to a cleaner business book in future.

  • Robert Parker says:

    In the late 80’s LAUTRO attempted a commission cartel. It failed. Market forces win every time. As long as there are unregulated territories, then the IOM will struggle to be the worlds policeman. The move by Hansard will not be the last. Watch this space.

  • Mark Blencowe says:

    If you cannot remember your history you are doomed to repeat it. Remember the Royal and LAUTRO!

    There is an ‘holier than thow’ feel about this which reminds me very much of my early days in this business.

    Many years ago there was a body called LAUTRO, the Life Assurance and Regulatory Organisation, which did as its name suggests. If my memory serves me correctly in 1988 some insurance companies broke ranks and decided to offer higher commission rates. I was a ‘life inspector’ at the time ( always thought that was a most peculiar title) and really did not have a clue what all the fuss was about. One of the ‘old lags,’ he was probably about 40 at the time(!) told me that we, that was Royal Life , were finished because Royal Insurance were going to stick with LAUTRO rules and not pay override. Sure enough our business dried up and eventually HO succumbed to market forces and paid what the market demanded. Hansard’s move , frankly, from a commercial point of view is therefore an excellent one.

    Kowtowed by compliance ,ours must be the only business in the world which is intent on killing itself!

    When I go into a shop in Regent Street and decide to buy an item of clothing I do not expect the sales person to tell me how much it cost to make.How much she is earning. Or how long the item should last for based on projections. I accept that they have a business to run, wages to pay etc. Having had the sales person show me the stores wares and having satisfied myself that I like it and want to buy it, after visiting several such stores and spending just as much time with each assistant, but where they received no financial compensation for the time they had spent with me, I am happy to purchase the product.

    Turn this on its head where the sales assistant tells me ‘..this is a world famous brand and we offer superb service and as your friends have recommended we will always try and give you our best service, but however under new regulations we must tell you that the coat actually cost £50 to manufacture but to you the cost is £750…’ What will happen? I ain’t gonna buy that coat without either a huge amount of haggling which will be to the detriment of the shop, or I just walk away. Which is what will happen to the retailer…the business just walks away.

    Why do people buy potatoes from Waitrose when they can buy them more cheaply elsewhere? Because of the experience and trust in quality and of service. In effect this business is self-regulatory.Without service, quality and honesty Waitrose would not survive. Any retail business, which is what we are in , is not cost sensitive , if you provide service . This is the key to business and as such it is self regulatory .

    So as John Wayne did not say, “…Remember the Royal!..’… and then they all died! ( For those of you they may not recognise this filmic analogy. John Wayne starred and directed a film about ‘The Alamo’ , a supposedly true depiction of a bunch of Texans defending ‘The Alamo ‘ against an overwhelming army of Mexicans and French, ( for the latter read compliance!) In reality they all got killed and for the film it bombed and lost a fortune…Hope I am not ‘The Duke’!

  • adkinson@private-capital.com.hk says:

    Likening a pair of trousers to a 25 year (corrupt) savings plan, God help us if you are advising clients!

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