Political support for Money Marketing’s No Advice, No Protection campaign is gathering momentum after the Economic Secretary to the Treasury voiced his concerns on insurance sales to MPs.
New secretary Ed Balls has written to the Labour MP for Battersea, Balham and Wandsworth Martin Linton expressing the need for distinctions to be made between advised and non-advised sales of insurance policies. Balls’ letter echoes the concerns of his predecessor Ivan Lewis, who wrote to Treasury Chief Secretary Stephen Timms to outline the steps the FSA is taking on payment protection insurance to ensure the fair treatment of customers. The letter also explains that the FSA is undertaking a review of general insurance products and it will be considering whether consumers buying protection on a non-advised basis get enough information to make an informed decision. The FSA is trying to ensure that firms selling protection insurance do not make inappropriate sales and that consumers understand the key features of a policy, including significant exclusions and the status of the service before buying protection products. Balls says he is pleased that people are taking personal responsibility for their financial decisions but says that certain requirements must be set out in the area of non-advised sales. He says: “The FSA will look at whether its rules provide appropriate consumer protection in the case of non-advised sales of protection products. “If the regulator concludes that changes are needed, it will consult publicly on the amendments.”View more on these topicsNews
Burn-Anderson multi-tie flops but profits soar
Burns-Anderson has posted a 500 per cent increase in profits but says take-up of its new multi-tie proposition has been negligible. The Bristolnetwork says it made a profit of 325,714 in 2005, up from 52,854 the previous year. Chief executive Mike Hughes says the company will now begin to concentrate on developing its wrap proposition […]
Standard picks F&C chief to push closed-end funds
Standard Life Investments is developing its closed-end fund business with the appointment of Gordon Humphries as head of investment companies. Humphries, who is expected to join the firm this summer, was head of invest ment trusts at F&C Asset Management. Working with head of UK Institutional Business George Walker, Humphries will assume responsibility for leading […]
Shake-up predicted in equity-release underwriting
Partnership Home Loans is forecasting a radical shake-up of the equity-release market with life expectancy assessed by health and medical history rather than just age. The firm says 40 per cent of the market will eventually see plans underwritten in this way. Providers currently determine life expectancy based on a person’s age and not on […]
Insight appoints Willis
Insight Investment has appointed Mike Willis as UK small cap fund manager.He will manage Insight’s range of UK small cap funds alongside existing small cap manager, Ed Robinson. Willis will join Insight in July from F&C where he held a similar role.Prior to F&C, he was an investment analyst at Bell Lawrie White in Glasgow […]
Inheritance tax when it is relevant
Neil Jones is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. A trust can offer significant advantages when an individual is […]
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Virgin Money completes sale to CYBG
CYBG has completed its takeover of Virgin Money bank in a deal worth £1.7bn today. The parent company of Yorkshire Bank and Clydesdale Bank says the deal will lead to the UK’s “first true national banking competitor to the status quo.” The combined company has over six million customers with around £70bn of customer loans, […]
Protection Watch: Mental health moves and future-fit income plans
Protection Review chief executive Kevin Carr looks at recent market events Moving forward on mental health Some say perception is reality and, in a world driven by social media and sensitivity, the way people see things is their truth, regardless of whether their conclusions are accurate or feasible. This is not a bad way to […]
FCA sounds climate change warning on pensions
The FCA is proposing new measures to force financial services firms to disclosure how they disclose climate change risk as it zones on in the investments pension funds make. The regulator has released a discussion paper today looking atthe effects that climate change and switching to a low carbon economy will have on the UK’s […]
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