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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


The hard line on stakeholder

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Winterthur joins the stakeholder charge

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Tories say a shift to multi-tied regime will help IFAs

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Individual approach from RSA

Royal & SunAlliance has pushed the focus onto individual stock selection with the introduction of the UK prime fund.This open-ended investment company (Oeic) aims to deliver capital growth by investing in a portfolio of around 30 stocks. However, investors who want to draw income from the fund can make cash withdrawals under a facility called […]

Industry under fire over pension freedoms

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