Lifesearch has lashed out at Paymentcare, claiming it is mislabelling ASU and MPPI as income protection.The firm says many general insurance firms are not following FSA treating customers fairly principles because they are promoting ASU and MPPI products as income protection. Paymentcare has been pinpointed as one of many prov-iders which Lifesearch says may not be embracing TCF by clearly making distinctions between the products. Senior technical adviser Kevin Carr says customers are often being led to believe that they are buying IP, which provides a partial income replacement for time off work due to long-term illness or disability, whereas they are buying ASU, which provides a sum for a limited period only. The Association of British Insurers makes a clear distinction bet-ween IP and ASU. A major flaw in the system is the use of search engines, which often direct users tow-ards ASU/MPPI providers des-pite being requested to find IP providers. The FSA says a series of visits looking at PPI firms found some selling practices to be poor. But the FSA, rather than use the full brunt of its powers, is asking the industry to improve its own standards. Paymentcare managing director Shane Craig says he has been in discussions with the FSA on this topic since August but was unable to comment further. Carr says: “This confusion should stop. While current interpretations of regulation allow this sector to remain lucrative, nothing will change. Ordering change is the only way forward.” Failure to make a distinction between ASU and IP products can be seen on providers’ websites. Paymentcare’s website features the “Paymentcare Income Protection product”. Further reading reveals it covers “accident, sickness and unemployment” which offers less protection than most IP products.
Financial Services Advice & Support is the latest network to join IFA Consortium, the network alliance formed in June by Falcon, Financial Synergies and pi Financial. Dunfermline-based FSAS was established in 2001 and has 50 appointed representative firms in Scotland and across the UK but is the only adviser network with its head office north […]
As someone who has endured the lack of technical expertise from many product providers, the latest rantings which will ultimately damage the position of our clients are to be deplored.
Middle England will be left to fend for itself and will be worst hit by the pension saving crisis, pension guru Steve Bee warned delegates at Money Marketing Live in Manchester. Scottish Life’s head of pensions strategy said people on wages close to the national average will be the worst hit because they do not […]
Just Wills is setting up a new business development scheme for advisers looking to integrate will-writing and estate planning. For wills with a recommended retail price of 565, the firm claims that IFAs could potentially earn an extra 102,000 a year by writing 20 wills a month. Just Wills says minimum gross profits of 75 […]
Holly Cassell, Assistant Manager of the Neptune UK Opportunities Fund The decision of the Federal Reserve not to raise US interest rates at its September meeting was met with surprise by many, and has been blamed by some as the chief catalyst for the global market volatility that followed. How does this affect the timing […]
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