View more on these topics

Execution-only poses protection perils

Lifesearch managing director Tom Baigrie says the FSA should crack down on execution-only protection sales as many people misbuy when they do not get advice.

Baigrie believes regulation of protection from January next year will lead many advisers to withdraw from the sector with the result that the majority of sales will be execution-only. He says the FSA should ensure that people do not buy products without getting advice.

In Lifesearch&#39s latest protection report, Baigrie hits out at the FSA, saying that historically the FSA “devastates all markets it touches”, and claims regulation of the sector will stop people protecting their families.

He considers the rapid growth in the protection sector is largely related to the fact it was the last unregulated sector.

Baigrie says regulation would best serve execution-only, which is the area of the market where most clients end up misbuying.

Lifesearch&#39s 35 advisers give predominantly phone-based advice to people looking to buy protection products.

Baigrie says: “We would like the FSA to address the real scandal in our market and stop the execution-only purchase of complex fin-ancial products.”

FSA spokeswoman Jackie Blyth says: “The FSA is not in the business of banning anything but is in the business of making sure there are rules and regulations in place to protect consumers. Those purchasing on an execution-only basis do take more responsibility than if they go through the advice route.”


Public to become financial experts

Consumers will quickly turn into astute financial services “connoisseurs” by 2008, forecasts a report from Mori Market Dynamics. Managing director Jon Francis says more education from sources such as media coverage, the internet, Government and product providers will substantially increase consumer knowledge in the next four years. Francis believes this will change the landscape of […]

Standard&#39s mutual fund platform to offer 75 funds

Standard Life&#39s mutual fund platform, Sigma, will offer 75 funds, 60 of which have an S&P research rating. The rated funds include nine from Jupiter, seven from Invesco Perpetual and five from Fidelity and DWS. Standard Life Investments has the most with 12 while Newton and Schroders have five and four respectively. The platform opens […]

CPG up for sale after cash crunch

High-net-worth IFA Corporate Planning Group, the firm set up by former Inter-Alliance director David Tuson, has been placed into administration and put up for sale. The Fareham firm, which had 82 RIs at a number of offices across the South, closed to regulated business on Monday because of a cash shortage. The advisers were employed […]

Old Mutual posts steady results for 2003

South African based insurer Old Mutual has reported a slightincrease in operating profit for 2003 posting a result of £475m for 2003, up from £473m in the year previous. The insurer owns UK-based Selestia and Old Mutual Asset Managers UK. Chief executive Jim Sutcliffe says: “Good results were achieved in five of our six businesses […]

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm