Speaking at the ABI conference this morning, Owen said that because equity release and long-term care require specific qualifications, there is a danger that consumers may not get the best product for their needs if they go to an adviser not qualified to sell such products.
He said: “Regulation at the moment is product-based so in order to advise on LTC products…you need to have CF8. In order to sell an investment bond you just need to be a financial adviser.
“I feel very strongly that it shouldn’t be products that are regulated in terms of advise, it should be the whole area of later life planning.”
He added: “Herein lies the next mis-selling scandal.”
Age Concern financial services policy adviser Jane Vass said there were reports of high sales of investment bonds, many of which are bought by those later in life, and warned it was important they were made aware that there could be restrictions on when they could withdraw money.
She also said that with all the complaints surrounding structured products it was important that those in their eighties who were sold the product fully appreciated the nature of the guarantee.