View more on these topics

IDD to be scrapped

The initial disclosure document is to be replaced with a requirement to disclose key information about a firm’s service in the first client meeting.

The information would cover the firm’s product range and how it is paid.

The FSA also plans to reduce the number of “trigger points” for issuing a key facts illustration, meaning intermediaries will only have to issue one when advice has been given on a certain product. Currently, a KFI has to be issued when information has been given about a product.

It has ruled out using the same “independent” and “restricted” labels that will be required for investment advisers under the RDR. Instead, firms must ensure they give customers a “plain and simple” explanation of whether there are any limitations in the product range they provide.

The FSA has decided not to go ahead with its proposal for lenders to calculate a mortgage’s affordability over a 25-year term, even if the actual mortgage term is longer.

Your Mortgage Decision director Dominik Lipnicki says: “Over the past few years, I think people have found the initial disclosure document useful because it is quite simple. It lists how we get paid, whether we are whole of market or use a panel and how to complain. I hope the new system of disclosure will be just as useful.”

Recommended

2

US investors to sue Lloyds

US shareholders in Lloyds are launching a lawsuit against the bank demanding compensation for its takeover over HBOS. According to This is Money, US shareholders have launched lawsuits against the bank, former chairman Sir Victor Blank and former chief executive Eric Daniels. The lawsuit claims that investors were not made aware that the Bank of […]

Iress poaches Focus client architecture head

Wealth management software firm Iress has poached Focus Solutions head of client architecture consulting Carol Blair as its new product and implementation manager. Blair is joined by Simon Thomas who joins Iress as senior project manager. Thomas was previously 1st Software general manager, Synaptic general manager and most recently Defaqto head of insight. Johann Koch […]

Tech winners keep on winning

By Ali Unwin, chief technology officer & fund manager, Neptune Artificial intelligence, driverless cars, big data. As technological advancements – and disruption – increasingly dominate headlines, Ali Unwin sets out six key themes he is watching in 2017. Read more Important Information Investment risks Neptune funds may have a high historic volatility rating and past performance […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment