The Interim Report, released today, has proposed separating advice and sales. The paper suggests protection could be included in the sales category, which will be split into execution-only and guided sales.
It states: “We are interested in how sales services might extend beyond savings and investment products to include delivery of certain kinds of protection products (for instance term assurance) and, in particular, more pro-actively tackle the protection needs of those with debt.”
“Some firms have already developed services that encourage customers to go through an automated process that then prompts them to decide what they want and helps them to buy a product. It may be that, particularly if we provide further guidance on what can be done under current regulations, more firms could work within those regulations to provide similar services where there is commercial demand.”
But the FSA recognises that this ‘pure’ form of sales may not go far enough to meet consumer needs.