View more on these topics

&#39Make endowment offices pay to send clients to IFAs&#39

Product providers should be forced to pay the costs of independent advice for consumers who have been missold an endowment policy, says the Consumers&#39 Association.

The watchdog says many consumers do not know which way to turn if they have been missold an endowment policy and the best way of resolving the issue is to see an IFA.

The CA says, given that it was most often the direct office that provided the bad advice or missold the policy in the first place, they should pay any advice costs that consumers may face.

The CA will make this argument in its response to the FSA&#39s consultation on the endowment crisis. It will also call for the FSA to prohibit life offices from using their orphan assets to pay any compensation costs to policyholders.

It says that in the past they have been allowed to use these assets to pay for pension misselling costs and they must not be allowed to do so again.

Senior policy adviser Mick McAteer says: “If it has been mostly the direct offices that are guilty of misselling in the first place, it is only fair that the provider should have to help these people who have suffered to find the best way out of their situation. That best way is to go and see an IFA.”

Holden Meehan adviser Dan Kemp says: “It is a very good idea if clients have been missold a policy and forced to seek the advice of an IFA that any costs faced should be paid by the provider.”


UK growth slows in fourth quarter of 2000

Growth in the UK economy slowed sharply in the last quarter of 2000 as growth in the service sector declined. Gross domestic product grew by just 0.3 per cent from October to December, less than half of the growth of the previous quarter. The slowdown was also caused by a downturn in industrial production, particularly […]

AITC committee members elected

Lough Callahan and Rod Birkett have been elected to the Association of Investment Trust Companies executive committee, replacing Andrew Baker and Richard Barfield. Callahan is chairman of the European Technology and Income Company, a director of Tribune Trust and an investment fund consultant with Ernst & Young. Birkett is managing director of Chase Fleming Asset […]

L&G joins stockpicking scrum

Turning to the charges, Robinson says: “It has a bog standard annual charge. The back ended charges are okay for five years or longer but they are expensive if you have to level out after two years, yield reduction from seven per cent to 5.35 per cent.”MacFarlane thinks the charges are fair and reasonable but […]

Gartmore concentrates on Europe

Gartmore&#39s European focus fund is aimed at high risk investors who want to invest part of their portfolio in a specialist European fund. The fund follows a stockpicking approach and consists of 30 stocks that the fund managers think will provide the best opportunities for high levels of growth. It is also available as an […]

Passport - thumbnail

Thinking of expanding overseas?

Whether you’re a small company or an established larger employer, expanding overseas into emerging markets can be an extremely attractive prospect for growing your business. However, with this comes a duty-of-care requirement to any staff based overseas.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm