View more on these topics

Distance directive bring in new rules for pre-disclosure

Advisers selling investment products over the phone, internet or post will have to provide greater levels of pre-disclosure under a new European directive aimed at guarding consumer rights when buying financial products remotely.

The FSA is setting out its rules for implementing the distance marketing directive, due to be enacted on October 9. FSA spokeswoman Jackie Blyth says the rules are designed to bring alignment across the EU.

She says the purpose of the DMD is to “help the smooth operation of the market for financial services throughout the European Economic Area”. It sets minimum standards for information required to be provided to consumers before they enter into a financial services contract with a supplier by “distance means”.

It provides a period of 30 days for life policies and 14 days for everything else, during which consumers can cancel contracts without penalty.

LIA head of public affairs John Ellis believes the directive will not affect IFAs substantially. He says for the face-to-face advice market, it will only affect advisers whose business is substantially over the phone or the internet.

Blyth says: “For many IFAs, these rules will only mean technical changes but it is important not to underplay the impact of this. IFAs will need to know which areas of their business will be affected.”


Debate highlighted misunderstanding of with-profits

It was good to read your lively debate on with-profits (Money Marketing, April 15) but it strikes me that most of the people on the panel would not know with-profits if it jumped up and bit them on the nose although at least Prudential gave a good account of itself. I conclude that the only […]

Kane makes it plain

If anyone was under the misapprehension that Scottish Widows had been put under the command of a mealy-mouthed faceless banking man, think again. The new chief executive Archie Kane does not mince his words. With-profits will diminish still further. The FSA is actively seeking to corral IFAs into bigger groups – an accusation often made, […]

The miles file

On my first day as a cub reporter 15 years ago, the editor sat me down behind a desk and presented me with a typewriter. Oh, and a very big bottle of Tipp-Ex for the series of mistakes I duly made. What is the old hack waffling on about, you are probably wondering. Well, many […]

ScotEq to keep cover for angioplasty

Scottish Equitable is maintaining cover for angioplasty under its critical-illness offering despite a big number of insurers dropping cover for the treatment. Several of ScotEq&#39s rivals, including Friends Provident, Legal & General, Norwich Union, Scottish Provident and Standard Life, have pulled the plug on cover for the treatment, arguing that it is a relatively simple […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment