View more on these topics

Consumer panel warning over potential misselling of unsuitable products

Ron Sandler&#39s proposals have been slated by the Financial Services Consumer Panel, which warns his recommendations could lead to consumers interests being disregarded.
In one of the strongest criticisms of the report the Panel attack Sandler for attempting to create a regime which expects consumers to know more about financial planning than the salesperson advising them.
The panel warns that the majority of misselling in the past has been the result of unsuitable sales, and it fears that by removing the obligation to consider suitability Sandler is running the risk of sparking future missellling.
The Consumers&#39 Association on the other hand, welcome Sandler&#39s findings, saying he has confirmed its assessment of an industry based on poor products, bad advice and failed regulation.
The consumer watchdog says the report offers a blueprint for the industry which focuses on consumer needs.
Unsurprisingly, both the FSA and Treasury also welcomed Sandler&#39s report with the two bodies saying they will meet in September to discuss more detailed feedback to his recommendations.
FSCP chairman Colin Brown says: “Under the proposed regime, the consumer will need to know more about financial planning than the salesperson. All responsibility for matching a product to a person&#39s needs is being pushed onto the consumer.”
CA director Sheila McKechnie says: “This is a powerful report that has correctly diagnosed the fundamental failings of the financial services industry. It shows that sole reliance on information and the market to deliver does not work.”

Recommended

Threadneedle predicts healthy future for fund

Threadneedle is launching a global healthcare fund next week in a move which marks the first time in almost three years that it has introduced a new equity product.Managed by head of global pharmaceuticals Forsyth McGarrity, the fund will launch on July 15 with around £5m of internal money. It will invest in healthcare providers, […]

Consumers&#39 Association says report &#39nails&#39 industry

The Consumers&#39 Association says the Sandler review has nailed &#39the industry line that it serves consumer interest&#39 by finding the industry full of &#39poor products, bad advice and failed regulation&#39.It believes Sandler&#39s proposals will help address causes of mis-selling, as well as reduce sales of unsuitable products and improve the quality of advice.CA director Sheila […]

Key features docs to be shortened and simplified

Key features documents need to be shortened and simplified because they do not currently serve any purpose Ron Sandler believes.At the same time, he is proposing a Consumer Guide which would provide consumers with a list of straightforward questions to ask their adviser. The guide would be compulsory for advisers to provide to potential clients. […]

Red Light Runners races for EIS cash

Red Light Runners is an enterprise investment scheme (EIS) that aims to raise up to £8m to finance an Anglo-American film called Red Light Runners. Unlike some EIS schemes that invest in films, the production of Red Light Runners will be a crime film for the mass market in the UK and US, rather than […]

Europe 2017: Value, large-caps & liquidity

Joshua Ausden, Head of Client Investment Strategy, Neptune Read more here Important Information – for Investment Professionals Only. Not for Retail Clients.Investment risksNeptune funds may have a high volatility rating and past performance and forecasts are not a guide to future performance. These are Neptune’s views and as such this document is deemed to be […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment