View more on these topics

IFAs want support for with-profits

Nearly three-quarters of IFAs believe providers do not give them suitable training and information on with-profits, according to Aifa research.

The research finds that 85 per cent of advisers feel they have sufficient knowledge to advise on with-profits but 72 per cent think providers do not offer IFAs suitable training and relevant information to support them.

Aifa director general Chris Cummings says the results of its first initiative found that overall, advisers were providing “good practice” when giving advice on these products.

But Cummings says there are still areas to be addressed. He says less complex and more comparable information about the funds in question must be made available from providers.

He suggests there is a prevalence of predetermined views about with-profits funds and advisers need to ensure that they are fully informed about the details of the products they are advising on.

Cummings also highlights the need for a debate over how to tackle dormant or inactive clients and on issues surrounding switching clients.

The research also found “a general nervousness” by advising on an area which has been the subject of much adverse comment.

A total of 564 firms took part in the study, which Aifa says is the biggest piece of research on with-profits undertaken.

Cummings says: “What emerges from this research is the strong divergence of views which advisers hold on withprofits products. This is not surprising as it reflects the complexity of the many issues which need to be considered.”

Financial Ombudsman Service decisions director and principal ombudsman Tony Boorman says: “Anything that helps contextualise disputes will be of value to our successors when they come to consider disputes about advice given today.

“I am happy to welcome this first strand of work on with-profits as the first step in what will be a valuable contribution to future complaint management and decision-making.”

Recommended

Hip task

Guy Anker looks at the latest changes to home information packs.

UnumProvident rebrands as Unum

UnumProvident is to shorten its name to Unum and introduce a new corporate identity from today.The move follows the decision of its US parent UnumProvident Corporation to change its corporate identity to Unum Group.The roll out of the new corporate identity will be complete by the end of the year.

Pru rules out compensation to annuitants

Prudential has refused to compensate thousands of pensioners who face a higher tax bill this year because it gave HM Revenue & Customs the wrong tax codes.The insurer admits it submitted the wrong PAYE codes for 2006-07, meaning 5,500 higher-rate taxpaying male annuitants underpaid income tax on their monthly payments.Pru has written to the annuitants […]

Neptune’s Burnett looks beyond Greece

Watch Rob Burnett, manager of the Neptune European Opportunities Fund, discuss the Greek bailout deal and its potential implications for European equities. In the video Rob discusses: Why, with the Greek crisis receding, markets can now focus on Europe’s strong fundamentals The resilience of European markets and why the recovery is on a solid footing […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment