New style with-profits products proposed by the Sandler review will create confusion and misunderstanding and could become the next scandal to rock the IFA industry, fund supermarket Selestia has warned.
It says the new products bear little resemblance to old-style with-profits and it is misleading to call them by the same name.
Marketing director Bill Vasilieff says: “These policies are not with-profits as they do not share in the profits of the business. They are in effect smoothed managed funds and should only be described as such. The gulf of misunderstanding between what consumers will think they are buying, and the reality of what are actually investing in, is a real danger to the financial services industry and to IFAs.”