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Editor’s comment of the week

Need for protection?

I am sure you have all experienced this scenario. A large sum of money appears in a client’s bank account. Immediately, the bank’s in-house advisers are tipped off and start hassling the client, telling them: “We need you to come in to the branch”, where-upon they try and flog them an investment bond.

It happened to an 89-year-old client of mine recently, even though she was over the age limit for the product the bank was trying to sell.

Being from a more deferential generation, although older people do tend to jump when the bank tells them, they are often quite worried to be called in.

Simple question – should we be demanding a change in the data protection regulations to stop banks exploiting data this way, that is, a Chinese-wall-type arrangement between deposit taking and financial product selling?

If the bank is recommending another deposit product paying higher interest, then fair enough, or a cash Isa likewise, but isn’t it fair to assume the client puts money on deposit because they want it on deposit, not in an insurance bond?

Neil Liversidge
Managing Director
West Riding Personal
Financial Solutions

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