Investment IFA Hargreaves Lansdown has issued a detailed criticism of the regulator's proposals for the abolition of polarisation saying the proposed system is nothing but one big loophole.
The IFA believes that the current system is working on the whole.
Head of research Mark Dampier points out that most of the problems, in particular Equitable, have arisen from the tied side. He says that providers, which have driven the changes, should have sacked their tied side instead and competed in the independent market.
He says: “The current polarisation rules have been around for many years and have not been obviously abused. In fact there have not been too many scandals despite the fact that every life company, investment group and broker have tried to circumvent the rules.”