View more on these topics

Flawed Sandler survey means more research needed as filters falter

The FSA is to embark on a second round of research into the Sandler sales process, saying a flawed interview process meant that its initial research has proved inconclusive.

The regulator says the research published this week shows that recommendations made by non-FPC advisers to the 502 consumers taking part in the project generally matched those by regulated financial advisers who were forwarded the client details.

But it also showed a number of weaknesses on the part of the filtered-question administrators, particularly when recommending a pension or an equity product to consumers.

The FSA says it cannot decide whether there is enough merit in the simple sales approach to go ahead with it but believes there is enough potential to justify a second round of research, which it hopes to complete by the end of April.

Eighty per cent of those who took part in the interviews, which took an average of 22 minutes, were given a recommendation by their adviser which was then endorsed by an FPC-qualified adviser.

But only 38 of the 151 who said they were looking to save for retirement were told to buy a stakeholder pension. Despite only 109 saying they were taking a medium to long-term outlook and were prepared to take on a degree of risk, 191 were advised to invest in equities.

Financial Services Consumer Panel chairwoman Ann Foster says: “We believe that the FSA research published today raises questions as to whether there would be adequate consumer protection with the proposed filtered questions approach.”

FSA head of retail projects David Severn says: “The results do not say without hesitation that this is the process but they also do not say this is dreadful and we are going to abandon it.”


Hargreaves warns that life offices must change or die

Life companies face extinction unless they overhaul their business models and become management consultants to IFAs, says Hargreaves Lansdown chief executive Peter Hargreaves. Writing in Money Marketing this week, Hargreaves says life companies should follow the example of IBM, which he says reinvented itself as a management consultancy after losing ground as a PC manufacturer. […]

Holloway Friendly Society – New Classic Plan

Type: Individual income protection plan Minimum benefit/premium: £50 a week/£2.13 a month Minimum-maximum ages: 18-65 Deferred periods One day, 4, 13, 26 or 52 weeks Definition of disability: Own occupation Options: choice of retirement ages 50,55, 60 and 65 Commission: 150% of Lautro, 157.5% of Lautro for online applications Tel: 0800 716654

Most people would pay for medical treatment but underestimate costs

The vast majority of people would be prepared to pay for private healthcare rather than wait for treatment. In a survey of 2,000 adults by Standard Life Healthcare, 85 per cent say they would consider paying up to £1,000 for private treatment while 62 per cent would consider paying up to £5,000. But Standard says […]

Chancellor hikes tax relief on VCTs

Income tax relief for investment into venture capital trusts is to be raised to 40 per cent under proposals laid out by Chancellor Gordon Brown in his pre-Budget speech. The Chancellor, addressing the House of Commons, said the Government would also raise the VCT annual limit to £200,000.


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 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