View more on these topics

FSA web update may herald Icob rules on non-advice

The FSA has added a buying without advice section to its Money Made Clear website, warning that consumers may be unable to seek redress from the Financial Ombudsman Service if they buy the wrong insurance product.

Lifesearch head of protection strategy Kevin Carr believes this could indicate that the FSA’s imminent Icob report will make concrete rules to ensure that consumers are warned they may not have grounds to complain if they do not get advice before buying protection products.

The FSA states on the website: “You do not have to get advice before you take out an insurance policy and UK firms that sell insurance without advice still have to follow our rules. But it is up to you to decide whether the policy is suitable for you. You may have less grounds for complaint if the product turns out to be unsuitable.”

Carr says: “We are very pleased that the FSA has deemed it necessary to inform the readers of its website of the potential pitfalls associated with buying insurance without advice and we hope this is an indication of what we can expect from its forthcoming Icob review.”

At a conference last week, FSA director of small firms and leader of retail intermediaries Stephen Bland hinted at looming regulation changes.

Bland said: “We will be bringing in a small number of targeted additional requirements to help ensure that consumers can make informed decisions about the purchase of these products.”

Recommended

Quilter trio join PSigma

PSigma Investment Management has bolstered its private-client offering with the appointment of three managers from Citigroup Quilter. Mark Chetwood, Julian Key and Chris Catchpole are set to join in the summer, bringing the total number of managers to 19. Chetwood is the latest former Credit Suisse employee to join PSigma, having worked there before joining […]

Health industry could be the model for regulation

The retail distribution review may recommend an independent council to govern financial advisers, with the ability to strike off those who are not up to scratch.The professionalism and reputation committee could recommend a single board, made up of representatives of the Institute of Financial Planning, Personal Finance Society, Aifa, lawyers and consumer organisations, to govern […]

Medals for long service

It has been hard to open the financial press recently without finding the not so smiling features of Anthony Bolton staring out at you.

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment