View more on these topics

Clerical is criticised for switch promotion

Clerical Medical has been accused of going against the principles of treating customers fairly after promoting a product as “excellent for bond switching”.

Broker consultants from Clerical Medical have been emailing adviser firms promoting its investment bond with the line “Up to 8 per cent commission or 108.75 per cent allocation – excellent for bond switching”.

The Whitechurch Network com- pliance director Gaynor Newman says the offer implies that the commission rate is a valid reason to switch. She says: “I do not see how this fits with TCF.”

Clerical Medical Financial Services managing director John Hiew says: “The reference to bond switching was int-ended to refer to the enhanced allocation for investors and not the amount of commission.”

Recommended

People on the move

Investment Alison Savage is joining Close Finsbury Asset Management as senior marketing manager. She will have special responsibility for marketing the Close Finsbury global investment funds across the institutional and retail markets. She previously held senior marketing roles at Framlington, HSBC Asset Management and Gartmore Fund Managers. Jupiter Asset Management has recruited Simon Hynes as […]

Balls says advisers need educating as much as the public

Treasury Economic Secretary Ed Balls has hit out at the advice sector, claiming it is as big a challenge ensuring that adv- isers educate themselves about industry developments as it is to educate the public. Speaking at an ABI Parliamentary reception in London last week, Balls said when it comes to financial education, making sure […]

Thoresen urges move away from indemnity

Aegon UK chief executive Otto Thoresen is warning product providers are in danger of cannibalising each other’s businesses and says they need to move away from indemnity commission. He says Aegon will continue paying indemnity to support advisers, particularly at a time when there is short-term need, but even advisers who rely on the cash […]

Citizens Advice disappointed by TDS delay

Citizens Advice says it is disappointed the Government’s Tenants Deposit Scheme has been delayed by six months.The scheme was due to come into effect this October but has been delayed until April 2007.The policy is being introduced as part of the Housing Act 2004 and will ensure rental deposits are held by an independent body […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment