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Strong Govt hint of step towards LTC regulation

The Government has given its firmest indication yet that it
is

preparing to make a U-turn and regulate long-term care.

In a Lords debate last week, Government spokesman Lord McIntosh of

Haringey said: “We shall aim to include long-term care products in the

regulated activities order.”

McIntosh said a Treasury committee is discussing financial product design, including disclosure, benchmarks, minimum standards and codes of conduct for LTC products.

The turnabout follows a cross-party fight led by labour peer Lord Lipsey

to get LTC included in the Financial Services and Markets Bill.

The industry has long hoped regulating LTC will free the market from

uncertainty and set a backdrop for dramatically increased sales.

Providers welcome McIntosh&#39s news but remain cautious. Age Concern

Financial Partnerships director and general manager Peter Gatenby says:

“What the minister said was as good as saying it will definitely be

regulated and it is a shift from how non-committal he has previously been

but he did not say long-term care would definitely be regulated.”

PPP Lifetime Care long-term care marketing manager Paul Bennett says: “The

headline news is that long-term care is to be regulated but we need to know

what this means, whether it will be the same as mortgages, where products

are regulated and Catmarked and advice is not regulated or if IFAs will

have to have a long-term care financial planning conversation with

clients.”

But Lord Lipsey told Money Marketing: “It is clear the Government intends

to go beyond how mortgages are regulated and make protection
for

long-term care products more complete.”

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