The Financial Ombudsman Service has asked the ABI to publish fit and proper business practices when Sandler comes in to prevent future standards being applied to past business.
Principal ombudsman (banking and loans) David Thomas told delegates at the BSA conference that it would be advantageous to have a yardstick for Sandler products similar to the various versions of the Banking Code, which make it easy to check past practice.
Thomas believes this yardstick should be made public so consumers are aware of it.
The ABI confirms it has spoken to the ombudsman about these issues but says it has to wait for the consultation paper on the sales process for Sandler before any further action can be taken.
Spokeswoman Emma Quantrill says: “We believe it is important that everyone has a shared understanding of what is good practice in the market at any one time and this will be particularly important given the development of the novel sales process of the Sandler products.”