DBS is setting up a non-regulated network service so intermediaries can sell term insurance products without incurring additional compliance costs.
DBS is hoping to start the service early next year, when members will be able to transact businesses in non-regulated products thr-ough a simplified sales pro-cess with a slimmer fact-find.
The move is seen as an attempt to head off competition from other non-regulated networks touting for business from DBS members, even though that would be in breach of members' agency agreements.
DBS hopes to expand the service into a fully-fled-ged non-regulated network once the future of GISC and mortgage regulation has been clarified. DBS has confirmed its new Bankhall-style support services network will go live in April 2002.
DBS sales and marketing director Mark Summerfield says: “A number of members had requested a non-regulated business facility. This service will allow streamlined trading in non-regulated products.”
Interface Financial Planning director Alan Moran says: “This move is definitely needed. There are members already doing non-regulatory business with other non-regulated networks. The way the fees have gone up for regulated business, it is not surprising.”