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Depolarisation will bring costly misrepresentation

I have just had a potential client contact me regarding insurance he took out with an agent when arranging his mortgage.

He was astounded to learn that I can provide individual cover for him and his wife, saving some £110 a month on the premiums. That equates to £30,000 saved over the lifetime of the plan – and at guaranteed (not reviewable) rates.

He could not understand why the person who arranged the cover was so much more expensive as he thought he was independent. Is it possible that the status of this adviser was incorrectly stated?

If the FSA&#39s depolarisation ideas go ahead, this sort of costly misrepresentation will be just the tip of the iceberg. Companies will expand their direct salesforces to the extreme detriment of the public.

Instead of going down this route, why not encourage more people to become IFAs thus increasing the opportunity for better and more cost-effective advice?

The only rational reason for not doing this is, of course, the banks and building societies – such an eminently sensible decision would he contrary to their own self-interest.Come on FSA, where is your courage and independence?

David Barnett

DPB Independent Financial Services, Edgware, Middlesex

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