Promotions in the general insurance and sub-prime mortgage sectors are still not up to standard, says the FSA.A report evaluated nearly 1,000 financial promotions to gauge progress over the past two years. Investment promotions which fell below standard dropped to 32 per cent from 52 per cent in 2004. Equity-release and lifetime mortgage promotions also improved. But the FSA says it has seen only limited improvement in promotions in the sub-prime mortgage and general insurance sectors where it says firms are making no attempt to issue fair and clear promotions which are not misleading. Common sub-prime failings included the omission of the annual percentage rate, incorrectly calculated APRs, lack of or inaccurate risk warnings, and a lack of or incorrect fee disclosure information. In GI, the most common problems included unsubstantiated headline claims, misleading comparisons between products, scaremongering tactics and use of jargon. FSA retail themes director Vernon Everitt says the shift from detailed rules to a more principle-based approach allows firms more flexibility but responsibility for ensuring customers are being treated fairly lies squarely with senior management. He says: “We continue to see variations in standards across different sectors but overall we have seen improvement over the last two years. The marked reduction in advertisements presenting a high risk to consumers is particularly encouraging. But we must see further progress.” John Charcol senior technical director Ray Boulger says: “If there was going to a criticism of promotions in any area I would expect it to be the sub-prime sector as the quality of brokers operating in this sector varies more than in the mainstream market.”
The Government’s decision to axe home condition reports could double the cost of PI cover for home inspectors, according to PYV. Chief executive Neil Pointon says the Government’s U-turn could have an added effect of raising PI costs for home inspectors as fewer insurers are likely to enter the market, making cover harder to come […]
Friends Provident’s total life and pensions sales have risen by 39 per cent in the first half of 2006 compared with the same period last year.The Group reported total life and pensions growth was £3,032m on a PVNB basis with UK life and pensions new business profits up 51 per cent to £53m compared with […]
The average first-time buyer paid a record 3.21 times their income to get a mortgage, according to data from the Council of Mortgage Lenders. This was up from 3.2 times the average income in May, and 3.06 times in June last year.Despite the rise, the number of first-time buyers taking out new loans went up […]
Property as has had many attractions as an asset class – low volatility, a lack of correlation to equity markets and the ability to provide a solid, reliable stream of income.
The past three years have seen another reason to invest in property – capital growth.
Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]
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As someone training to be a cricket umpire, fair play matters to Fortitude Financial Planning director Chris Bowmer. Doing the right thing for clients is something he has adhered to from the start of his career, even in a 1980s sales environment with nothing to gain by delving beyond a client’s surface requirements. While he acknowledges […]
Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
With no employer to fall back on, the self-employed are on their own when it comes to retirement saving. Irregular income patterns can make it harder to save regularly into a pension and commit to locking money away until age 55. Those who are building a business may see that as their biggest asset and […]