Which? and Aifa are throwing their support behind Money Marketing’s No Advice, No Protection campaign, asking for consumers to be better informed when buying protection on an execution-only basis.Both bodies believe a simple table of bullet points is needed to outline the fact that execution-only consumers relinquish some protection from the Financial Ombudsman Service. But they stress that any form of presales literature should be succinct. Aifa deputy director general Fay Goddard warns of information overload but supports a table of bullet points with a tick box to show the consumer understands they are entering an unadvised and unprotected environment. Which? says it has been expressing concerns on protection sales since general insurance regulation was introduced. Principal researcher Teresa Fritz says complex insurance such as income protection, critical illness and life cover should not have been included with simpler products such as car and house insurance. She says: “The onus has been placed on consumers to make the right choice, so it is essential that consumers ask themselves whether they are being offered a wide enough range of products and whether they need more information or advice. “We wholeheartedly support the campaign as we regard the purchase of protection through direct sources in its current form to have the potential for a lot of consumer detriment.” Goddard says: “No Advice, No Protection is a key message. We are very supportive of the idea and consider advice absolutely crucial in adding value.” Highclere Financial Services partner Alan Lakey says: “There are complex issues with regards to the purchase of protection products. What it really comes down to is that customers should be taking advice from someone who is whole of market.”
The Government’s U-turn on public-sector pensions will make the job of selling reform in the private sector much harder, warns Aegon head of corporate affairs Francis McGee. McGee says last week’s agreement between the Government and public-sector unions – which allows existing workers to continue to retire at 60 while the pension age for new […]
Ken Davy – Chairman, Simply Biz Services The issue of loss of consumer rights when they purchase on an execution-only basis is, or ought to be, a major issue for consumers and the associations which seek to protect them. Unfortunately, these organisations often seem to know the price of everything and the value of nothing […]
St James’s Place is warning wealthy individuals that inaction on pension planning ahead of A-Day next April could result in them facing a 55 per cent recovery tax. SJP is looking to mop up affluent, disintermediated people with the launch of a pension audit service that aims to maximise retirement income post-A-Day. The audit will […]
The Invesco Perpetual Aim VCT will offer 25m in new ordinary shares in January 2006. The trust launched in June 2004 and was the most successful launch by a new entrant into the VCT marketplace, raising 25.1m through an offer for subscription.
New research has revealed that the highest percentage of opt-out rates in auto-enrolment is made up of 22- to 30-year-olds (28.49 per cent of 2,102 people surveyed, who chose to opt out of schemes, were in this age bracket).
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Scotland has introduced a new set of income tax bands, but pensions experts warn that the changes could cause issues with pension tax relief calculations. In the Scottish Budget today, the Government announced a new starter rate of 19p and then a 21p rate for those earning over £24,000. The higher rate of tax is […]
The scramble to do as many defined benefit transfers as possible while values remain high is unabated, and I am constantly amazed at how some firms have thrown caution to the wind in the hunt for their share of this – admittedly lucrative – opportunity. The problem is that advisers are putting their profits before […]
The FCA working group tasked with setting a template for fund charge disclosure is considering whether one or multiple templates would be more suitable. The institutional disclosure working group, chaired by transparency champion Chris Sier, has been tasked with creating a new template for fund costs and charges following the package of remedies outlined in […]