View more on these topics

FSA to exempt certain Holloway policies from RDR

The FSA is proposing to exempt certain Holloway sickness policies from the Retail Distribution Review, as part of its latest quarterly consultation issued today.

The regulator says the RDR’s rules on professionalism and adviser charging should not apply to advice on some of the policies, which combine income protection insurance with an investment element.

The consultation says: “We are proposing an exemption for those Holloway policies with a small investment element.

“Following discussions with the Association of Financial Mutuals, we are consulting on a threshold where the projected maturity value contained in the key features illustration is 20 per cent or less of accumulated premiums, using the mid-rate projection of the Holloway provider.”

The regulator has asked for feedback to be submitted before March 6, 2011.

Elsewhere the FSA is also proposing to add further qualifications to its recognised list for advisers under the Retail Distribution Review.

The qualifications relate to two RDR activities, advising on packaged products and friendly society tax-exempt policies, and managing investments or acting as a broker fund adviser.

They include the diploma in investment planning offered by the Chartered Institute of Bankers in Scotland, which is examined in a work-based assessment format.

Association of Financial Mutuals chief executive Martin Shaw suggests the FSA has not gone far enough. He says: “Holloway policies are typically sold as income protection style policies with additional features that make them excellent value for money, particularly for the self employed or low earners, who are generally poorly served by insurance companies.
“The FSA’s proposal to exempt some Holloway products from the RDR is a welcome albeit a rather limited concession. It would mean that post-RDR an independent adviser would be able to compare Holloways on equal terms with other forms if income protection. For these products at least FSA recognises that adviser charging would be a barrier to fair competition.”



Government looks to stem dramatic house price increases

Housing minister Grant Shapps wants an era of “house-price stability” and says the Government has levers to help foster a slowdown in price increases. Shapps told the Observer he wants a new era of stability where prices rise below the rate of earnings to make property more affordable, especially to young people. He says: “I […]

Standard Life creates regional tech consultant roles

Standard Life has created five regional technology consultant roles to support advisers using its Adviserzone platform. The group says the consultants will help advisers use online services to secure business benefits like cost reductions and revenue gains. Advisers are looking to technology in the run up to RDR as they try to de-risk their businesses, […]

Pensions - thumbnail

Auto-enrolment — don’t leave it too late…

With auto-enrolment (AE) well under way for the UK’s largest businesses, over the next three years an additional 800,000 smaller employers (with less than 60 employees) will start their journey to comply with the legislation. AE mandates all eligible employees and their respective employers to make regular pension contributions into a qualifying pension scheme. To learn more about the legislation read our brief Jelf AEase — simple steps to AE compliance guide.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Very sensible approach to Holloway contracts, evey firm should be required to consider them.

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