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CA challenges Govt&#39s claims on misselling

The only way to prevent Ron Sandler&#39s suite of simplified stakeholder products being missold will be to change the definition of what constitutes misselling, the Consumers&#39 Association ironically warns.

Speaking at the Treasuryhosted seminar on the Sandler report, CA director of campaigns Allan Asher posed the question of how the Government planned to avoid the misselling of the new products.

If the regulation of the sales process is removed as is intended, Asher warned that misselling is inevitable unless the definition is redefined.

Asher said it appeared the proposals as they stand remove all liability for products after their sale and leave little room for redress if consumers feel they have been missold a plan.

At the meeting, Sandler reiterated one of the key recommendations in his report, calling on the FSA to define misselling as no exact terminology currently exists. The regulator has yet to respond to that recommendation.

Asher said: “I would challenge the point that these products cannot be missold. The only way these products cannot be missold is if misselling is redefined to exclude them.”

Axa marketing manager Steve Muir says: “I do not think there is general agreement within the industry and even the regulator that these products cannot be missold.”

FSA managing director John Tiner said: “We are committed to striking the right balance but the risk of significant consumer detriment borne by people that misbuy or are missold the stakeholder products will have to be addressed.”

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