INDEPENDENT financial advisers are up in arms over the decision by a large Kent fund manager to sell direct to the public.

Fidelity International, based in Hildenborough, has annoyed long-established Pharon Independent Financial Advisers of Harbledown, near Canterbury, with its latest pension product.

The row erupted after Fidelity, the UK’s largest fund manager, launched a supermarket self-invested personal pension (Sipp).

It is offered through Funds Network, a so-called supermarket.

Previous Fidelity Sipps, which offer investors a choice of 1,000 funds and 56 fund groups, were only available through IFAs.

Pharon advisers believe that direct selling places too much control in Fidelity’s hands.

They claim this control may be abused and work against the best interests of clients.

Michael Sargeant, managing director of Pharon, goes so far as to warn that such a move could spell the end of independent advisers and says pension planning is a complex area and investors need professional advice.

He accused Fidelity of being less than responsible with this approach.

"This is another example of a major company trying to drive out the IFA," he said.

"IFAs offer independent and whole-of-market advice across all providers particularly suited to an individual’s requirements."

He added: "Any threat to the existence of IFAs would harm the market overall as there will always be a need for independent advice.

"This direct approach is deliberately used to attract business at potentially higher margin, cut out IFAs and make clients their own."

He explained that IFAs contribute to the economy through their advice, by employing people, and protecting clients from the dangers of investing in unsuitable products.

IFAs introduced a significant amount of business to Fidelity, he said, and the Sipp move raised a question mark over whether they can now be trusted to support relationships between IFAs and their clients.