View more on these topics

Firms must review processes

The FSA has ordered all firms selling pure protection to review their sales processes after finding “significant failures” by firms to comply with oral disclosure rules.

Firms have six months to confirm a review has been completed and protection sales processes comply with Icobs. If they cannot comply they will have to write with a plan and timetable of how they will change their processes. The FSA wrote to all firms selling non-investment-related protection “requesting” they carry out a review in a letter dated November 29. In the letter, director of conduct policy Sheila Nicoll says: “We will continue to monitor closely whether the information provided by firm complies with our requirements. Should it come to our attention a firm is not complying, we will consider the extent of the breach and the appropriate regulatory action.”

In June, the FSA published its review of Icobs which came into effect in January 2008. In research with over 1,000 clients and a call-listening exercise with 11 firms, the FSA found companies were not making it clear what was advice and what was information and that product features were explained poorly.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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 advice.

    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

    Email: customerservices@moneymarketing.com