View more on these topics

IFAs urged to welcomelife industry standards

IFAs should welcome the ABI&#39s proposals to establish standards across the life industry, says a taskforce chaired by Aifa director general Paul Smee.

The Savings and Long Term Risk initiative is to provide accreditation for life office brands.

IFAs had expressed concerns that the initiative would grant accreditation more easily to providers which use direct salesforces rather than those that use independent advisers.

IFAs feared the original proposals left them beholden to life offices over the way they conducted their business.

But the taskforce concludes these concerns have been addressed.

It says the scheme will facilitate a better working relationship between providers and life offices.

It has made a series of recommendations aimed at ensuring IFAs do not suffer from Saltr.

The taskforce agrees with the ABI that the cooling-off period during which customers can decide to cancel their policy should be set at 30 days instead of the proposed 60- day period.

The report also suggests the Saltr promise on appropriateness of advice should not imply the product provider is responsible for the advice given by an IFA. It has reworded the promise to remind investors they have statutory rights to receive compensation if it is proved the recommendation has been unsuitable.

All the report&#39s recommendations have been accepted by the ABI and will form part of the Saltr proposals.

The committee has been discussing Saltr for three months. It is made up of eight representatives of IFA firms and life offices.

Smee says: “Our concerns have been addressed. You can see positives coming out of this. We have done an awful lot to ensure it does not interfere with the client IFA relationship.”

Recommended

LibDems call on Govt to axe employer stakeholder rule

The Liberal Democrats are calling on the Government to scrap the obligation for emp-loyers to provide stakeholder pension schemes to their employees.The party also says employers should not be required to provide advice to employees wanting to invest in a pension.In a report issued this week, the LibDems say the stakeholder obligations on employers are […]

IFAs want ABI to clarify stance on polarisation

IFAs are demanding the ABI clarifies its position on polarisation following the revelation in Money Marketing that its last FSA submission advocated white labelling.The ABI says the clause on white labelling was included after lobbying from its members. There was no such clause in the original draft submission sent out to life offices.But providers with […]

IFAs expecting to sell more non-conforming loans

Two-thirds of IFAs expect to write more non-conforming mortgage business in future.Research by non-conforming lender Platform Home Loans shows more than 80 per cent of IFAs have already written non-conforming business, averaging between one and three cases each month.IFAs say interest rates are the most important feature when choosing a non-conforming mortgage for their clients.The […]

A Consumer&#39s View

Safe Home Income Plans has just reported a significant increase in the sales of equity- release schemes.At £240m, sales are up by 143 per cent on the past two years, with new mortgage and annuity schemes accounting for nearly £85m of the total and home reversions for the balance of £155m. Overall, about 5,131 schemes […]

Parental leave and pensions

Fiona Hanrahan  – Senior Product Insight and Technical Support Analyst We are often asked how parental leave impacts workplace pension schemes in terms of funding in general, auto enrolment and salary exchange. This article will explain each of these. How does parental leave impact the funding of workplace pension schemes? A member of a defined […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment