The main issue of company financial strength for consumer protection
is clouded by spin.
No profits, no reserves is particularly relevant today.
IFAs should consider their positions when recommending companies
offering 1 per cent capped products. The flawed pension review
revealed that fairness, Government copout and retrospective rulings
are very real.
Companies offering 1 per cent a year capped products should carry
serious financial health warnings in any products offered, both for
consumers and financial advisers.
If still relevant, the remaining,1 per cent issues can then be addressed.