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Review reveals the direct route to misselling

The end is in sight for the darkest chapter in the history of UK&#39s financial services but the price tag has jumped from£11bn to £13.5bn.

The increase for phase two pension review cases comes partly as a result of people living longer, changing stockmarket conditions and because more information is being unearthed.

But the figures point to the same conclusion – that misselling is over whelmingly a direct-sales problem. IFAs must shoulder their share of the blame but they are simply not in the same league with under 13 per cent of phase two cases.

Small IFAs, in particular, are holding their own, required to offer redress in under 40 per cent of their cases investigated to date while providers and bigger IFAs are offering redress in more than 80 per cent. Small IFAs lag providers in per centage of cases completed, but only just, with 30 per cent to providers&#39 34.2 per cent and bigger IFAs&#39 43.3 per cent.

Nevertheless, IFAs&#39 perceived “tardiness” has led the Treasury to gun for an end to polarisation. We believe the Government prefers multi-ties controlled by providers in the mistaken belief they can offer faster redress.

This line of thinking also involves a dramatic underestimate of how well equipped the regulator is to stop misselling in the first place.

But whatever erroneous conclusions have been drawn and despite the fact that regulatory and Government failings compounded the delays, IFAs must pull out all the stops to finish the review and start to win back consumer confidence.


Newbury expands mortgage range

Newbury Building Society has added the Newbury five mortgage to its range of products. The mortgage has a 0.2 per cent discount for the first five years of the mortgage, giving it a payable rate of 6.55 per cent for loans up to 95 per cent of value. It is available for first time buyers […]

Leeds & Holbeck cats its&#39 Tessa Isa

Leeds & Holbeck has expanded its range of Tessa Isas with the Cat standard Tessa Isa. The Cat standard Tessa Isa is aimed at investors who have a tax exempt small savings account (Tessa) that it about to mature and are now considering how to reinvest the capital that the Tessa has acquired into a […]

CML launches employee benefits package

Company Management Limited has joined forces with Alexander Forbes Financial Services to launch a new core employee benefits package. The package aims to help its payroll clients review and administer their employee benefits and offer them professional and independent financial advice. Alexander Forbes Financial Services will advise CML clients on corporate services such as insurance […]

Asia the target for Premier fund

Premier Portfolio Managers is expanding its range of offshore funds with the PII Far Eastern Fund. The fund is a Luxemburg based SICAV and is aimed at investors who are looking for capital growth by investing in the Far East. It will go for a range of stocks and shares, bonds and warrants from countries […]

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.


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