View more on these topics

Insurers&#39 duty is to protect clients, not themselves

Isn&#39t it ironic that in an industry which is as closely regulated as financial services, the concept of duty of care is so often blatantly lacking.

As an IFA, I have almost now become used to seeing the business introducer and, more important, the client being left in the corner while the insurance company undertakes its priority, namely, protecting its legal and regulatory position.

Skandia is not a company that I have had a lot of problems with in the past. However, a recent case has highlighted the above issue only too clearly.

I have just transferred a pension plan for a client from another company to Skandia. Due to certain penalties applying, I specifically requested that only the protected rights element was transferred.

After the usual considerable delays, it transpired that Skandia had completely ignored my instructions and transferred the whole amount.

Although, by the letter of regulation, we would have to accept some liability by inadvertently signing one of the hordes of documents that came our way some months later, Skandia feels it is justified in accepting no liability whatsoever. I am sorry but is this what protecting the client is all about?

When are the guys running these companies going to stand up and decide whether they are really going to provide a quality financial service or not?

Richard Essex

IFA, Grayside

Recommended

Magian warning on non-reg business

Magian Mutual says it will be very wary of offering professional indemnity cover to intermediaries which have carried out a significant amount of nonregulated business. The statement comes after leading broker Direct Life & Pensions revealed in Money Marketing last week that it was told by its PI broker it would have to disclose any […]

Brokers slam Bupa over firm&#39s &#39appalling&#39 processing of CI cover

Bupa has been accused by Lifesearch of having “appalling turnaround times” in processing new critical-illness business and other brokers have joined in the criticism. Lifesearch says it is dismayed by Bupa&#39s turnaround in applications, saying its staff have been left on hold for up to 45 minutes. Nursing Home Fees Agency says it has taken […]

FSA says too early to say how regulation will work

The FSA has welcomed the Treasury announcement on home reversion plans, saying it will bring clarity for consumers and that reversions carry comparable risks to lifetime mortgages. Press officer Robin Gordon-Walker it is too early to say how it will regulate home reversion but it will go through a consultation process in due course. The […]

Going round in circles on endowments

With regards to the endowment scandal, our authorities do seem to be going round in circles on this issue. As I understand it, the FSA are responsible for the general contents of the so-called new-style review letters. However, they unfortunately contain insufficient information to enable the planholders to make any form of valued decision and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com