IFAs could be sued for negligence if they do not tell elderly clients about the need for long-term care insurance, says IFA Care.
Director of education and training Tish Hanifan, who is a barrister, says IFAs could be sued by families of clients who are diagnosed with a debilitating illness if they do not make them aware of LTC products.
She points to the Treasury proposals on LTC regulation, which would regulate best advice, saying this covers not just what is advised on but also what is not.
City law firm Eversheds partner Michael Wainwright says it would depend on the type of service the IFA was offering but he says there would be a risk if there were gaps in the service the IFA was promising to provide.
Aifa director-general Paul Smee says this should not be blown out of proportion. He says: “There are undoubtedly circumstances where this could happen and good IFAs should run down all the issues. It is terribly important they should be up to speed on LTC products. But the same could be said about any aspect of financial advice.”