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Get out of the pocket of the providers

I refer to the letter published in Money Marketing entitled, Protection policy was not protected against helpline.

The actions of Scottish Widows as described are totally unacceptable. However, Mr Steel&#39s criticism does appear bizarre, as he is prepared to fund both his business and lifestyle by the receipt of indemnity commission from the product provider he criticises.

Indemnity commission is an interest-free loan kindly provided by the product provider to the introducer.This soft loan is effectively subject to early repayment if the underlying policy is lapsed or surrendered and is only earned at the end of the indemnity period. I understand that in the case of Scottish Widows&#39 term insurance,this is five years.

As long as the IFA community is prepared to be in the funding pocket of the prod-uct providers, their criticism, however upstanding and valid, will fall upon deaf ears.

Filip Slipaczek

New Barnet,Hertfordshire

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