Aifa has praised the FSA’s paper on provider/distributor responsibilities, saying providers can no longer stand by in “splendid isolation” allowing advisers to be blamed when things outside their control go wrong.Director general Chris Cummings says advisers have been unfairly blamed for too long for problems with marketing and product design. He says that the paper’s focus on product providers considering client needs when discussing distribution highlights potential problems with non-advised sales, particularly in equity release and protection. He says the discussion paper, which was published last week, provides a clear message for providers to improve their post-sales service and says advisers are always ready to accept responsibility for advice as long as they have been given accurate and timely information. The paper aims to provide more clarity on the provider/ distributor relationship, resulting in a statement of responsibities as part of the FSA’s treating customers fairly regime. The paper encourages providers to design products with greater care, provide higher quality information, monitor distribution channels more effectively at a high level and undertake better post-sale analysis. The regulator says it is not placing new regulatory responsibilities on providers or distributors, nor is it looking for providers to police distributors. Cummings says: “Providers can no longer stand in splendid isolation insulated form the problems of products they have manufactured, nor can they seek to walk away when design problems arise, passing the buck to the IFA community.” Association of British Insurers director of consumer strategy George Hodgson says: “This is an important issue and we have already been focusing on it. The FSA’s paper does not propose any new responsibilities for providers or distributors but is a useful discussion of existing regulatory arrangements.”
Openwork Holdings Limited has announced the appointment of Martin Davis to its board.The holding company for multi-tie network Openwork has hired Davis, currently Zurich International life business chief executive.Prior to joining Zurich, Davis was commercial director at Sesame. He holds an MBA from London City Business School and spent five years in the Special Forces. […]
One of the supposed pleasures of being self-employed is that you can organise your own time, rather than stick to office hours. This week, I have plans to change my working week radically. I am going to start at 6.30am with the aim of clocking off at 2pm. This should allow me to power through my work first thing and log off after lunch when my brain slows like a computer with clogged-up memory.
McCarthy surprised many in the industry by seeming to morph into industry analyst Ned Cazalet while making a speech to pension industry leaders at Gleneagles. He called for urgent changes to the financial services distribution model, which he says is failing consumers, providers and advisers.
Standard Life is to offer its Sipp through life and pensions business written by UBS.The life office has been added to a list of Sipp providers for the administration of business written by UBS.The Standard Life Sipp was launched in December 2004 and has over 20,000 customers with investments in excess of £2.4bn.Standard Life Assurance […]
In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]
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The Financial Ombudsman Service has told Kingswood Financial Advisors to compensate a client over a Sipp investment in an unregulated Harlequin property fund. The case concerns Mr B’s complaints about the advice he received regarding two unregulated investments: one into a Harlequin property fund and the other into Green Oil. The ombudsman’s ruling relates to […]
Phoenix Group, Alliance Trust Savings, Zurich, and Old Mutual Wealth are amongst the most complained providers in the latest FCA complaints data. A total of 3.76m complaints were received by the FCA during the second half of 2017, up 13 per cent on the first half of the year. Alliance Trust Savings is the most […]
The FCA is reviewing the market for preference shares following the furore over Aviva’s recent decision to cancel its high-yielding preference shares at par value. FCA chief executive Andrew Bailey says in a Dear CEO letter that the regulator is reviewing the prevailing market for certain fixed income shares, particularly those classed as perpetual, irredeemable […]