The abolition of the Age 70 rule comes into force today allowing Icob advisers to sell life policies maturing after the age of 70.
The FSA Board voted to scrap the Age 70 rule, which restricts the sale of policies maturing beyond age 70 to Cob advisers, in April this year.
The FSA considered extending the rule to age 80 but decided, after consultation with the industry, to do away with the restriction all together.
The FSA said: “We have therefore proceeded on the basis of option 2 to remove the age and term conditions from the definition. We do not consider the features of the products affected by this rule change warrant the extra regulatory burden imposed by the COB regime.”
Providers and advisers had been pushing for the regulator to axe the rule. Many felt it was outdated in a society where people are living longer and retiring later.
Bright Grey technical product manager Ian Smart says: “It was a sensible move because the rule didn’t make a great deal of sense. It didn’t add protection, it added confusion because people were not being able to take out the cover they actually needed.”