View more on these topics

PFS wants crackdown on product marketing

The Personal Finance Society is lobbying the FSA to tighten the way providers market their products to advisers.

Members are increasingly concerned that there are few consequences for providers for their marketing of products to IFAs. Aifa is also in talks with the regulator on the issue.

Members have raised concerns that they often have to identify potential problems they may face with products.

The PFS gives examples of split caps, often marketed as “low risk”, and precipice bonds, described as “guaranteed”.

Chairman Bob Bullivant says if providers become more accountable, there will be fewer calls on the Financial Services Compensation Scheme.

Bullivant says: “I would like to think we can work with providers and get to a situation where marketing to IFAs must be transparent. Members should not have to spend their time picking out the flaws in products.”

Aifa acting director general Fay Goddard says: “Pro-gress is being made with the regulator, especially with rec-ent comments made by chairman Callum McCarthy showing a desire for more provider transparency.”

Johnston Financial Services managing director Adrian Johnston says: “Shareholder pressure means product prov-iders must invent products to sell but that are not necessarily safe for our clients. IFAs have to treat anything they get from providers with a healthy degree of scepticism.”

IFA Woman of the Year Saran Allott-Davey is determined to use the cachet of the award to encourage other women into the financial planning business

Recommended

The One Account launches intermediary exclusive

The One account is announcing a new 12 month discount on its Flexible Mortgage Option product. The new offer will be exclusive to intermediaries giving customers a discount of 0.46 per cent off the long term rate. This will mean a discounted rate of 5.24 per cent for loans of less than or equal to […]

Home brew

Despite a brief interruption by my ramblings on the pre-Budget report, I have recently been concentrating on the important subject of inheritance tax planning using the principal private residence. On the face of it, this may seem like a subject of only passing importance to financial advisers as it does not involve any financial product but this would be a short-sighted view.

Hopwood quits Bankhall

Former Bankhall IT director Nigel Hopwood is leaving the firm after two years following a merger of its IT and operations departments. Hopwood is assisting new IT and operations director David Scott with the merger. Bankhall says that the move is an indirect result of the new environment created by the regulation of the general […]

The whole truth

Jason King’s recent letter exemplifies the same arguments that were put forward in the 1970s, by the “buy a term and invest the rest” brigade who used bland figures to substantiate equally bland arguments. Term insurance was the foundation of all insurance but the foundation of life insurance and the concept of whole-life insurance acknowledged […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment