View more on these topics

Abbey call for FSA protection rethink

Abbey protection head Nick Kirwan is calling for the FSA to reconsider its stance on the definition of pure protection products before regulation of the sector starts and causes erosion of customer choice.

Under current regulations, which were finalised last week, products such as term, income protection or critical illness which have contracts running over the age of 70 and which are held for more than 10 years have to be treated as investment products for regulation purposes while products which have a shorter term will come under different rules when regu-lation takes effect in Jan-uary 2005.

The regulator says it will look at the issue and consult again if it considers a change may be justified.

Kirwan says if potential changes are not made before regulation comes in, it will be an “absolute disaster”, meaning that insurers will have to rebuild systems and retrain staff twice. He says the ABI has already informed the FSA of its concerns.

Kirwan says insurers are currently left with three options after regulation starts – classing all policies as investment products, using the two regimes with the added cost and risk of “getting it wrong” or redesigning products to reduce the maximum term that a policy can be taken out.

He says: “No one can give us an explanation as to why we have this rule. I cannot think of a single reason why it would be like this.”

FSA spokeswoman Kate Bristowe says: “We are looking at the issue. If we decide to consult, we would take account of the impact on firms and as part of the consultation process, companies would have an opportunity to voice their concerns.”

Recommended

St James&#39s enjoys final-quarter fillip

St James&#39s Place saw new business rise by 24 per cent in the final quarter of 2003 despite a 4 per cent fall for the whole year. Investment new business leapt by 44 per cent to £26.1m annual premium equivalent in the last three months while protection business was up by 32 per cent to […]

ABN takes note with Euro-DAN bonds

ABN Amro is launching its European Direct Access notes into the UK, allowing IFAs to buy global companies&#39 original issue bonds on behalf of clients. The notes, called EuroDANs, will be available at a fixed price throughout the year, offering investors a variety of coupon payments and maturities. Initially, they will have either three-year or […]

Britannia launches three-way structured product

Britannia launching a guaranteed capital bond which links investments to gold and house price rises in addition to the FTSE 100. The three in one guaranteed capital bond protects investors&#39 original capital while allowing unlimited capital growth over five years. The investment is split three ways between the FTSE 100 index, the gold price and […]

FSA publishes PI insurance guide

The FSA has published a guide to getting professional indemnity insurance in a bid to give IFAs a greater insight into the PI market. The guide includes information on how IFAs can improve their systems and present their risk more effectively to insurers.

Graphic Content – August

Given the release of employment data from the US on 5 August, we wanted to focus on employment data in this month’s Graphic Content. The Graphic Content below shows us that young and middle-aged workers were hit the hardest by the Great Recession and have never caught up. Since the job market started to recover […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com