View more on these topics

Insurers questioning value of ABI kitemark

The ABI&#39s Raising Standards project could leave IFAs in an advice quandary and may not be worth the millions providers are preparing to pour into the initiative, claim some providers.

This week&#39s high-profile launch of the project, which is part of the Savings And Long Term Risk initiative, is being undermined by misgivings from providers.

Tunbridge Wells Equitable Friendly Society says the quality mark may not add to consumer understanding of fin- ancial products, while Legal & General is concerned that the project could become just another layer of red tape.

Twefs chief executive David White says: “The issue for independent advisers will be that, if life offices can gain accreditation but unit trust companies cannot, how can advisers use the mark to help clients distinguish between products?

“It would be foolish to sign up to this without being satisfied this is the best use of our members&#39 money. There is an awful lot more work to be done on this bef-ore we decide.”

But Twefs&#39 stance could mean it is left out in the cold if the ABI has its way.

Raising Standards proj-ect director Andrew Stoker told Money Marketing: “We would be pleased if life off-ices not signing up for acc-reditation were treated as social pariahs.”

L&G spokesman John Morgan says: “We are strong supporters of the FSA&#39s role as a primary regulator and at the moment the FSA is currently involved in a number of in-depth consultations with the industry.

“We would wish to see it establish itself as the primary regulator and are in no hurry to sign up to seeking accreditation under a potentially competing ABI scheme.”

The Raising Standard quality mark was launched this week with the aim of kitemarking” life and pension products which meet the Saltr criteria.

The aim of the kitemark is to guarantee clarity, quality and service.

Recommended

Esop could be a success story

Berty Plastics is an expanding manufacturer of plastic extrusions. The company wants to ensure staff retention is high and therefore wants to review its range of employee share plans. With the recent changes in share plans, what is the recommended plan to adopt? Rewarding employees with company shares is a proven way in which to […]

More buyers take out MPPI

The Council of Mortgage Lenders is claiming victory in the campaign to encourage the take-up of mortgage payment protection insurance following the release of its latest figures.CML statistics show 31.7 per cent of all new mortgages taken out in the first six months of this year were protected by MPPI compared with only 28.8 per […]

Relief roads

Many businesses and farms have borrowings and it is important to be aware of how business property relief and agricultural property relief operate in these circumstances.For business property relief, the key determinant as to whether one applies the relief to the value of the property before or after deducting the outstanding loan is the purpose […]

Mortgage 2000 – 6.49 Per Cent Fixed

Tuesday, 17th October 2000.Fixed term: Until August 1, 2002.Fixed rate: 6.49 per cent.Minimum loan: £15,001.Maximum loan: Up to 95 per cent of valuation subject to a maximum of £150,000., up to 90 per cent of valuation subject to a maximum of £450,000, up to 75 per cent of valuation subject to no maximum.Income multiples: 3.5 […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment