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IFAs attack &#39misleading&#39 Prudence literature

Prudential has come under fire from IFAs who claim its latest marketing material for its with-profits bonds is misleading.

IFAs say Prudential&#39s Prudence bond literature makes invalid comparisons between the bond and a building society account.

Prudential describes its bond “as boring as the building society”.

But advisers say this is misleading because the bond is not as secure as a building society account and it relies upon a ter-minal bonus to achieve its return.

They claim the brochure has not placed the statement on past performance not being a guide to the future in a visible place and say readers could easily miss the information.

The performance information is placed under the terms and conditions on the back of the leaflet, which IFAs say is not clear enough.

Prudential intermediary division spokesman Darragh Leeson says: “The literature is designed to drive consumers to IFAs, it is not an off-the-page advert.

“It is up to the IFAs to advise clients and determine the appropriateness of the product for individ-uals. We are confident that the literature is approp-riate for giving IFAs warm leads.”

Pearson Jones director Nick Conyers says: “Prudential is leaving itself wide open to criticism with this marketing literature. It may well attract clients into a product under a certain amount of false pretence.”

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