View more on these topics

&#39Suite is simply not worthwhile selling&#39

The Financial Ombudsman&#39s refusal to give the Sandler suite immunity from misselling means distributing them is not worthwhile, says Royal London chief executive Mike Yardley.

Yardley says there is no margin in distributing Sandler products through a direct salesforce even if the price cap is raised.

Last week, Royal London shut its DSF to become an almost exclusively IFA-distributed product provider.

Yardley says: “There is a distinction between simple products and suitable products. You can have a simple product but it still may not be suitable. Walter Merricks has said that the ombudsman could still take action over the sale of simple products.”

Financial Ombudsman Services spokesman David Cresswell says: “Any product in the wrong hands could lead to a complaint. Rules aren&#39t out yet but when they are that is what we will have regard to when we make decisions.”

•DSF scrapped, p12

Recommended

A simple request can turn into a paper mountain

Fulfilling a client&#39s simple request for a mortgage protection policy, it seems I have to send him at least four pages of illustration, 12 pages of key features and 20 pages of application form, these latter two items covering every protection product in the insurance company&#39s armoury. Not only is this a waste of paper, […]

Interest rise could send loan PI up

A rise in mortgage-related misselling claims is set to send PI premiums soaring for mortgage brokers, according to PI broker Collegiate. Head of claims Martin Archer believes rising interest rates and higher unemployment will mean a number of borrowers feel over-committed on their mortgages and may go to the ombudsman. Archer says until now affordability […]

Cap increase needed to incentivise providers – Smith

The Government&#39s price-capped medium term investment product and pension product will both carry a maximum annual management charge of 1.5 per cent for the first 10 years that the product is held and 1 per cent thereafter. A statement from Department for Work and Pensions secretary of state Andrew Smith says the increase in the […]

Correspondent&#39s View

It is Monday and I am in chaos. This is my first day after an idyllic week on a Wiltshire farm watching pigs snuffle in a trough. Not much change there, then. My vow to attend the gym fails as I opt instead to sit on the sunny patio and read the papers. I then […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment