View more on these topics

Liability and Unipass

I refer to the article, IFAs face potential £15,000 personal liability with Unipass (Money Marketing, November 27).

The article is misleading in that it wrongly suggests that IFAs using Unipass under any circumstances are putting themselves at financial risk.

This is not the case and I am writing to you to ensure that any IFA misunderstanding created by your article is corrected.

The liabilities attached to the use of Unipass are explicitly defined in the Unipass contract, which was subject to a very positive independent review by Aifa in early 2003.

The contract is designed to protect the trust and integrity of Unipass and promote good security practice, ensuring that it remains an invaluable enabler for doing business online for providers, portals and of course, the adviser community.

The contractual obligations make an individual responsible for ensuring that they provide accurate information including at the application stage, keep their Unipass safe and secure and use it appropriately (for, example, not for unlawful, defamatory or obscene messages).

In the unlikely event of Origo requiring to take legal action, an individual would have had to breach one of the simple but important rules laid out in the contract.

Simply put, IFAs who follow reasonable security practices do not take a financial risk each time they use Unipass.

Many of your readers will be aware that it is common for contracts not to refer to a liability cap.

Rather than exposing individuals to unlimited liability, Origo have instead set an upper cap on liability of £15,000 so that exposure is not open-ended, thereby following good business practice.

This figure is at the lower end of the scale and is clearly referred to in the independent Aifa review.

IFAs should also note that this contract will not make individuals liable for any losses to their firm as a result of misuse of Unipass.

There are now over 7,000 users as opposed to the 4000 stated in your article.

Recent customer research undertaken by Origo confirms that IFAs agree that Unipass improves internet security and also brings significant usability benefits.

If any IFAs or providers are concerned about Unipass and wish to discuss this further, they should contact the Unipass helpdesk on 0845 129 8877.

Paul Pettitt

Managing director

Origo Services, Edinburgh


Watchdog&#39s view is critical

The Financial Services Ombudsman is reckoned to be looking warily at the trend towards reviewable premiums on critical-illness policies, with some product providers saying that the watchdog has indicated that such contracts may fall foul of unfair contract principles. It has indicated its concerns that policyholders may not understand the premiums they are being quoted […]

Woolwich Plan Managers – The Premium Protected Growth Plan

Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-£500,000, £1,500 Isa/Pep transfers, £3,000-£7,000 Isa Term: Five years and six months Guarantee: Original capital returned in full at end of term regardless of movement in indices Return: Up to 100% growth in index Closing date: January 15, […]

A consumer&#39s view

The wise men of the Treasury select committee are to conduct an inquiry into how to restore confidence in long-term savings and whether the Association of British Insurers&#39 claim of a £27bn savings gap stands up to scrutiny. The obvious answer to restoring confidence is to have a different approach to regulation because, to date, […]

Kevin Duffy on mortgages

England&#39s epic achievements in Sydney triggered a morass of media features all striving to expose newsworthy sub-plots. My own keepsake was the revelation that England coach Clive Woodward had twice remortgaged his home along the path to personal financial security. Woodward is a man of convictions. So much so that his services are now courted […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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