View more on these topics

FSA set to axe age 70 rule

The FSA will scrap the age 70 rule on protection policies regulated under Cob rules, which will allow Icob advisers to sell policies maturing beyond age 70, according to several product providers.

The regulator’s consultation period ended on Wednesday and responses from providers, advisers and trade bodies are expected to call for the abolition of the rule.

The FSA originally suggested two options – scrapping the rule or raising the age 70 condition to 80.
Zurich UK protection development manager Gerry Warner expects the FSA to abolish the rule and says he would be surprised if it raised the age.

Warner says: “My only concern might be that if you have these products in your armoury, then Icob advisers will be able to advise on IHT planning. Cob advisers understand the tax implications well but would all Icob advisers have that same expertise to operate in the IHT regime?”

If the rule is axed, providers say it will open up the marketplace for conventional non-profit whole-of-life plans and pure protection whole-of-life plans to Icob advisers.
Scottish Widows head of protection development Johnny Timpson says the age 70 rule is obsolete and he wants for the FSA to scrap it.

Timpson says: “The rule is obsolete and it would make management of our salesforce a lot easier if it was removed. We would not have to think in terms of Icob and Cob advisers.
“It also provides an opportunity for Icob advisers to talk to customers about whole-of-life cover which may help reverse the falling sales of these policies in recent years.”


Product matters

It is difficult to look at the Kent Reliance intergenerational mortgage as a product as it is more of an initiative. This idea is long on concept and short on detail. The only place I managed to find information on this mortgage is in the press as the Kent Reliance website had no information and […]

Bear building

Could we really see a bear market develop in residential property in this country? Such an event is not without precedent. In the early 1990s, house prices fell – in some areas by as much as one-third. The reason for dwelling on this unnerving prospect is that in the US we have seen disappointing sales […]

Lifesearch warning after finding errors in product material

Lifesearch has warned protection providers to monitor closely the information they send out to advisers and networks after it found inaccuracies in promotional material from three life companies.The errors were found in product feature comparison tables, with the life offices in each case wrongly claiming that a competitor product did not contain certain features that […]

Fidelity global property fund now available as UK Oeic

Fidelity’s global property fund is now available as an Oeic on Cofunds, FundsNetwork, Lifetime and Transact. From September 12, the fund will also be available through Skandia. The global property fund is part of Fidelity’s Sicav and it invests in property stocks and Reits worldwide. Both versions will be managed by Steve Buller.Fidelity says due […]

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]


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