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Politicians and advisers vow to amend Care bill to avoid LTC advice ‘disaster’

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Baroness Sally Greengross has vowed to lodge an amendment to the Government’s Care bill that will force local authorities to refer people to regulated financial advisers for long-term care advice.

The bill, published last week, sets out a requirement for local authorities to signpost people to “independent financial advice”.

A department of health spokesman says the bill uses the  term “independent” to mean financial advice that is independent of the local authority, with no requirement for local authorities to refer people to regulated financial advisers.

The position is contrary to the joint scrutiny committee on the draft care and support bill report, published in March, which explicitly called for local authorities to signpost people to Financial Conduct Authority-regulated advisers.

International Longevity Centre chief executive Baroness Sally Greengross, who sat on the scrutiny committee, says she plans to lodge an amendment to the bill to force councils to refer to regulated advisers.

She says: “People must get the right advice or it will be a disaster. Regulated financial advice is crucial as we are talking about someone’s house at stake. It could go very wrong so I will work on an amendment.”

Conservative MP and member of the scrutiny committee Harriett Baldwin says: “Our committee was unanimous that anyone giving long-term care financial advice should be professionally qualified and recognised by a regulator.”

Society of Later Life Advisers president Lord David Lipsey says: “The gold standard is regulated financial advice and I’m sure ministers will be pressed to give assurances.”

The bill, published last week, confirms Government plans to cap care costs at £72,000 from April 2016.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. All these non regulated firms going round working with solicitors to put the main residence in a trust…… deliberate depreciation anyone? And all unregulated.

  2. what about all these “Pension & Retirement CONSULTANTS” springing up who are NOT regulated financial advisors and doing commission rebate’s of 10% on pension transfers. Will HMRC deem them unauthorised payments and whack the member for massive tax?

    The FCA needs to get to grips with all this unregulated rubbish and leave regulated to get on with their job s now we are post RDR

  3. Paul Hartford 15th May 2013 at 9:11 am

    These are one of the most vulnerable groups of people in our society and to leave them to the clutches of advisers who are unqualified and inexperienced in dealing with such people would be a true scandal and an invitation to mis-selling.Can you imagine the vultures that would descend on these people to put in place their investment bonds and discounted gift trusts ,dressed up as LTC friendly policies? I am a aware of so called qualified CF8 advisers who have never done a LTC case in their life but would be able to deal with these clients under the current terms. This has to be dealt with now or the government will be held responsible for this potential disaster.This must not be product led advice and clients need to understand that any advice has to be paid for as in many cases their will be no need for a policy to be established.

  4. @Paul H – I am not sure what you are getting at. I have CF8 and in 15 years have done about 3 ltc products, all before I had the qualification, I.e before it was mandatory. A lot of advice is what NOT to do and what to do in 10 years time. The planning means the client is mentally prepared well before the need for a product arises including LTC and equity release.

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