Speaking at the PFS Conference today, Waters said attitudes from some quarters of the industry had only confirmed the need to review whether RDR proposals should be applied to general insurance products.
He said: “In our consultation paper, we have identified a risk that introducing adviser charging for investment products may lead advisers to focus on protection, where they might still earn commission.
“Some of the reported reactions to this analysis seem to suggest that it is difficult to mis-sell protection products at all and that no serious consumer detriment can arise – presumably on the basis that if some people have the wrong policy or too much cover that’s no big deal. We’re alarmed by the apparent complacency in some quarters.
“The prevalence of such attitudes would only confirm to us that we need to review our approach.”
Waters reminded delegates that consumers rely on their advisers to help them make the right choices about protection and said it is “unacceptable” to recommend to a customer a policy or level of cover that they don’t need.
He said the results of an analysis into the protection market would be published early next year.
He said: “We are not jumping, however, to any conclusions about applying RDR proposals to protection. We understand that there are real differences between the different markets.”