View more on these topics

‘Protect pure protection from RDR’

Lifesearch head of protection strategy Kevin Carr is calling for pure protection business to be “ringfenced” from the retail distribution review.

He says: “Protection should be ringfenced. The FSA’s two areas of concern do not apply to protection. With protection there is no investment growth so there is no consumer detriment and there is no product bias because commission is the same across all products, it is driven by the premium.”

Carr says consumers will not pay fees for protection products unless they are spread over the term of the policy and advisers would be forced to charge higher fees to clients in poor health as their cases will require more work. He says: “At what point does this become discrimination? Commission works in this situation because if the premium is loaded the commission goes up and the adviser is paid for the extra work.”

But compliance consultant Adam Samuel says: “Different types of products do attract different commission and to exempt little bits and pieces is incoherent.”

Recommended

Defensive measures

In this week’s article, I am returning to a subject which is very close to my heart, career and IFA business – pension transfers.

Protection downfalls

Protected investments can have nasty surprises for investors

A Shaw thing

Annie Shaw is a freelance financial journalistThe consolation biro IF sent me made up somewhat for me not attending the IF Comedy Awards in Edinburgh this year. Nevertheless, I had a jolly good time travelling solo for three days at the festival. I confess that I preferred Tony Blair – the Musical to Tony! – […]

Neptune launches Japan Institutional Fund

By Chris Taylor, Investment Director, Head of Research Neptune is excited to announce the launch of the Japan Institutional Fund on 22 June, having disclosed to the market in March its intention to offer the product. The Fund will be managed by the highly-regarded Chris Taylor, Head of Research and manager of the long-running Japan Opportunities Fund. It will invest in the same underlying stocks as the Japan […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment