Professional indemnity cover is now the highest overhead we face and anyone who has asked for a quote for run-off cover will know it is just not affordable into retirement.This is clearly a major problem which is compounded by two issues referred to by recent correspondents. Yet again, we will have to contribute to pay for compensation claims for a medium-sized limited company IFA which has chosen to go into liquidation to avoid its liabilities. The FSA must be pressed into taking action to protect the rest of the industry and the clients against what is often a gross abuse. The other issue is of spurious complaints encouraged by complaint handlers, as referred to by Gareth Fatchett (Money Marketing, January 6). In November, my wife and myself each completed an online five-minute question-naire from one such organi-sation.We answered all the questions in a way which would lead anyone to conclude we had not been missold an endow-ment. We even answered “yes” to a question which asked if we had been informed at point of sale that the policy might not pay off the target sum. Unsurprisingly, the result screen said: “From the answers you gave, we believe you may have been missold an endowment policy.” This was followed by four emails over the next few weeks offering further encouragement to register a complaint through the agency. I referred the results to the FSA, who said this was nothing to do with them as it is an issue for the Office of Fair Trading. The OFT replied they were not intending to look at these businesses. Christopher SheldrakePrincipal,The Insurance and Investment Service,Ferndown, Dorset
An IFA action group could be set up to start legal action for investors in the Eurolife secured bond which is set to mature next week with investors losing around 17m.
Private client manager Rensburg’s rejection of Rathbones’ offer in favour of a reverse takeover of Carr Shepherd Crosthwaite could secure its shareholders a better deal.
Lawrence House Fund Managers
Lawrence House Balanced Managed Fund
Great fun was had by all at fund firm Jupiter’s 20th birthday bash at the swanky Elysium bar last week. But a hidden menace lurked in the shadows unbeknown to most revellers. PR goddess Angela Madden’s attempts to tie a huge bunch of helium balloons to the Diary were met with short shrift by the […]
By Robin Geffen, Fund Manager & CEO This is a testing time for investors. Over the past year the market has been driven forward by strong fundamental trends underpinned by changes in the real world, but over the past month a more animalistic sentiment has sent shares plunging. As we consider the remainder of the […]
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Another investment manager offering enterprise investment schemes has alerted clients of a 10 per cent drop in value for one of its portfolios following new Mifid rules. Mifid II, which came into force on 3 January, requires firms to notify clients when the overall value of their portfolio, relative to its value at the beginning of each reporting […]
The recent enquiry by the work and pensions select committee has reignited the debate about the future of collective defined contribution schemes. Whether these sort of schemes can be incorporated into the current UK pensions landscape is a moot point. Let’s consider some of the arguments for and against CDC. First of all, it is […]
Retirement interest-only mortgages are set to become more popular following the FCA removing hurdles to selling them. The regulator sees RIO mortgages as a possible aid to the waves of maturing interest-only loans with no repayment strategy. However, the FCA also wants RIO mortgages to be sold more widely, for example as an additional option […]