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FSA will regulate LTC and advice is poised to follow

The Treasury has confirmed that sales and marketing of long-term care insurance will become fully regulated by the FSA, with providers predicting advice will also fall under the regulator&#39s remit.

The Treasury appears to have ruled out Catmarking of LTC, with providers claiming the failure to mention it in the announcement this week indicates the plans have been dropped. This is despite its prominence in the original Treasury consultation paper released in December.

Although the regulation of advice is not specifically mentioned in the document, pro-viders believe it is on the cards once the Treasury and regulator have consulted on the latest proposals. The Treasury is to consult on how regulation will work in practice and the FSA will hold further consultation on specific rules to be applied.

But the industry is urging the regime to start as soon as possible after nearly four years of reviews, including a royal commission report established in December 1997.

The latest move means IFAs specialising in retirement planning must now pay more attention to the product or risk falling foul of regulations.

Providers say that while regulation provides opportunities to IFAs, it also obliges anyone specialising in retirement planning to take LTC into consideration.

Norwich Union LTC strategy manager Sandy Johnstone says: “There is no prospect of Cats coming in now or at anytime in the intermediate period and I welcome that.”

PPP Lifetime Care LTC marketing manager Paul Bennett says: “Full regulation usually includes both the design and sales processes. We expect advice to be covered by regulation as well.”


Nat Mut explains demutualisation to policyholders

National Mutual is writing to policyholders explaining its demutualisation and sale to GE Capital. Policyholders will be asked to attend an EGM on November 20 at Lords cricket ground in London to vote on the proposals. GE bought NatMut in June in a deal worth £570m. Members will receive £500 for loss of membership rights. […]

Marketing via the internet is a must

I have been banging the internet drum to other IFAs for over two years now, so I was interested to see the article “Internet is the key to survival” (Money Marketing, October 11). It seems that, at last, the penny has dropped.It is indeed a very foolish IFA who ignores the internet. It will never […]

ICMG – Self-Certification

Thursday, 25 October 2001.Discounted term: Until December 1, 2002.Discount: 1.5 per cent until March 1, 2002, 0.7 per cent until December 1, 2002.Payable rate: 4.99 per cent until March 1, 2002, 5.69 per cent until December 1, 2002.Minimum loan: £25,001.Maximum loan: Up to 80 per cent of valuation subject to a maximum of £500,000, up […]

Friends CD shows net admin deal

Friends Provident is giving IFAs a CD which demonstrates its online admin system for its stakeholder pensions.The CD uses voiceovers and graphics from Friends&#39 online systems to show IFAs and employers how various aspects of scheme admin can be undertaken on a cost-effective and efficient basis.The admin services inc-lude inputting members&#39 det-ails, making contributions, adding […]


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