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 businessView more on these topicsNews
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The whole truth
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Protection, health and wellbeing benefits help 1,500 employees back to work
New research has proven the positive impact that protection, health and wellbeing (PH&W) benefits have upon a business.
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