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LTC lord warns on danger of misselling debacle

The pension misselling scandal will be repeated unless the Government introduces regulation of long-term care products, warns Labour Lord David Lipsey.

Lipsey, a member of the royal commission on LTC, was speaking at a Labour conference fringe meeting discussing who should pay for LTC costs.

He says, because of the complex nature of LTC products and the low level of understanding among both the public and advisers, the potential exists for another big misselling scandal unless the Government acts soon.

Financial Secretary to the Treasury Stephen Timms said there is no need to rush in with the “heavy hand of full regulation” to an industry that is still small. He says the industry is unlikely to grow to mass-market size so the Government can afford to take its time about the decision to regulate.

Lipsey says: “The pension misselling scandal will be repeated in spades as people prey on the fears of consumers who will not have the assistance of the state to safeguard their interests. The Government must bring in regulation of LTC products, and ensure those who are selling them know what they are selling.”

Timms says: “We are looking to consult on the need for regulation. I think we are right to be cautious about rushing into regulation.”


NPI taking stakeholder on the road

NPI is embarking on a series of national roadshows designed to strengthen its presence as a stakeholder provider.The roadshows will be led by NPI managing director Trevor Thompson and parent company AMP Group group executive Damon Watkins.They will be held at 14 venues over the next few weeks. Around 1,000 IFAs are expected to attend.The […]

Scottish Legal Life Takes The High Yielding Road

Scottish Legal Life has introduced the fourth tranche of its Guaranteed Investment Bond.There has been a steady stream of guaranteed bonds throughout the year, but they are usually linked to a benchmark index such as the FTSE 100. This unit-linked bond invests in the stockmarket through the Britannic higher yield fund.At the end of the […]

The facts on PI

At Collegiate Insurance Brokers, we specialise in the professional indemnity market, especially for IFAs.We have access to all the major PI underwriters within the market.Notwithstanding PYV&#39s recent reported comments, it is our opinion that the endowment mortgages exposure is unlikely to cause premium increases of the magnitude stated.We are able to obtain quotations very similar […]


1: What benefits can multi-ties, product ties, white labelling or dep-olarising stakeholder products bring to consumers which the current system fails to deliver?2: How much will any change cost to implement, who will pay for this change and by what method?3: What possible changes to stakeholder and Isas could be made to increase the efficiency […]

Investment clock economic update

In the latest Investment Clock economic update, Ian Kernohan, Senior Economist at Royal London Asset Management, discusses the implications of the US Federal Reserve’s recent hike in interest rates and upcoming French presidential election. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


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