View more on these topics

IFAs accuse CA of double standards on endowments

IFAs are accusing the Consumers&#39 Association of double standards with its endowment misselling campaign by ignoring its own advice which supported the products in its Which? publication dating back to 1988.

Last September, the CA and Which? launched an endowment action campaign claiming that up to five million consumers with an endowment mortgage had been missold and encouraging them to complain as they could be missing out on compensation.

Many in the industry believe this encourages speculative complaints from “bounty hunters”.

They also claim that the CA is ignoring the plus points of low-cost endowment mortgages which the CA outlined in its April 1988 issue of Which?

The consumer watchdog&#39s publication said: “The policy will probably be worth considerably more than the guaranteed amount” and “repayments on a low-cost endowment will now normally be slightly lower than for a repayment mortgage”.

Its verdict was: “Repayment and low-cost endowment mortgages are neck and neck as best buys.”

IFA Bob Riach says the CA suffers from the same lack of foresight as it is accusing the industry of and it is being pushed by popular consumer views rather than providing guidance.

Training company DWT compliance consultant David Williams says: “The CA is operating to complete double standards and with a total lack of integrity. It seems more concerned with selling copies of Which? than with protection.”

Which? principal researcher Teresa Fritz says: “The aims of the report is to inform people what is out there and, as the sale of the product is regulated, it is then up to the sales process to ensure the suitability of the specific product for the individual.”


Seller&#39s packs could be delayed by looming conflict

The threat of war with Iraq could delay the Government&#39s timetable for seller&#39s packs due to be reintroduced to Parliament in March under the Housing Bill, warns Legal & General.Director (housing marketing) Stephen Smith believes it will be difficult for the Government to meet its commitment in last November&#39s Queen&#39s Speech that the bill will […]

IFAs expect further falls in annuity rates

Many IFAs are expecting annuity rates to fall over the next 12 months, with 80 per cent expecting a 2.5 per cent drop, according to Key Retirement Solutions.A survey of 50 IFAs showed that 15 per cent were even more pessimistic, predicting annuity rates would fall by 5 per cent or more while just 5 […]

Poll position

Remortgaging continues to grow in popularity, according to our latest consumer survey. But while customers are increasingly prepared to change their lender, they prefer to make any new arrangements through traditional channels – the overwhelming majority of borrowers like a face-to-face meeting to arrange their mortgage.The continuing popularity of remortgaging is reinforced by the statistic […]

NU and Standard top IFAs&#39 list of multi-tied partners

Norwich Union and Standard Life top the table as IFAs&#39 preferred partners in a multi-tie, according to this year&#39s Money Marketing/One Account State of the IFA Nation.The results show that 43 per cent of the 215 advisers surveyed would put NU in their top four provider choices followed by 41 per cent who would choose […]

Time for a new approach to asset allocation

Trevor Greetham, RLAM’s head of multi asset, introduces the recentlylaunched RL GMAPs. Asset allocation has become an increasingly difficult challenge for investors and advisers in the years since the financial crisis. Sometimes violent price swings in stock and commodity markets coupled with the collapse in the rate of interest on bonds have made it harder […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm