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 […]
Newsletter
News and expert analysis straight to your inbox
Sign up
FSCS to pay back 2,700 clients of collapsed DFM Beaufort
The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back. London-based Beaufort Securities has been investigated by both the FCA and US authorities. An indictment from the US Department of Justice alleges that […]
Profile: Fiducia on really knowing your clients
Fiducia managing director on ‘good old-fashioned’ customer service in the digital world Anthony Scott is adept in the art of communication. As an adviser and a novelist (he has written the novels ‘On Ashover Hill’ and ‘The Birthday Gift’) it is crucial for the Fiducia Group managing director to engage and build a rapport with […]
FCA warns over advisers giving ‘inadequate information’ to DB transfer specialists
The FCA has reiterated its warnings that advisers outsourcing defined benefit transfer advice to firms with relevant qualifications cannot divorce themselves from responsibility for the eventual recommendation. While existing FCA rules require additional qualifications to advise on DB transfers, and the FCA has written to all firms who have DB transfer permissions as part of […]
Comments