The Chartered Insurance Institute is calling for all advisers dealing in long-term care insurance to be required to pass an approved exam before giving advice.
In response to FSA consultation paper 200 on long-term care insurance and after working with the regulator and the Financial Services Skills Council on the development of a new LTC syllabus, the CII says grandfathering could cause problems in the industry and would lead to a two-tier advice regime and consumer confusion.
The CII is also warning against advisers postponing taking exams and T&C under the premise that the new regime will have different requirements.
It is calling on the FSA and the FSSC to make this position clear to avoid any “potentially damaging training and competence hiatus”.
CII qualifications director Lucy Courtenay says: “Given the complex nature of LTC advice and the potential vulnerability of consumers, we believe that all advisers should be subject to the new training and competence requirements however transitional arrangements need to be put in place to ensure existing advisers have sufficient time to meet the new requirements.”