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&#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

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