View more on these topics

Tories plan consumer disclaimer

The Tories are floating plans to introduce a consumer disclaimer in the advice process for some products.

At a meeting with the IFA Defence Union, Tory MP John Redwood said the idea was part of the “radical” agenda of his economic competitiveness group to reduce unnecessary regulation and help advisers.

He said advisers should be able to give “intelligent advice” on higher-risk products with a written disclaimer exonerating them from responsibility.

Redwood said the advice gap stems partly from advisers not being willing to service some clients due to regulatory fears or the FSA burden making them unprofitable.

The FSA is stopping many people from getting proper financial advice, he said.

Redwood, charged by David Cameron with producing policies by next summer, said caveat emptor has “much to recommend it” and the proposal could apply to several products.

He said: “You could have a device where an IFA would tell a client, if you want more interesting products here is a clear disclaimer. The adviser can say I am not going to stand behind you but I will still try and give you intelligent advice. Therefore there will be no claim.”

Recommended

Northern Rock launches new range of fixed rate bonds

Northern Rock has issued its latest range of fixed rate bonds for one, two or three years requiring a minimum deposit of 1.The three new limited issue bonds will offer guaranteed returns at a rate of 5.5 per cent gross per annum and will be fixed to October 1 2007, 2008 and 2009 respectively.From today […]

Fidelity designs two-tier NPSS model

Fidelity has put forward an alternative to the NPSS which would enable savers to opt out of the basic scheme to access wider investment choices. Under its open personal account scheme, savers would be auto-enrolled into a personal account based on the low-cost default fund set out by the Government. An open-market option would also […]

Barclays sets LTC exam standard

Barclays Financial Planning is the first firm to require all its advisers to pass the Chartered Insurance Institute’s CF8 exam in long-term care to advise elderly clients.

US loan growth is not painting a pretty picture for the US economy

Written by Mike Riddell One of the current big debates in global financial markets is whether investors should believe ‘hard’ rather than ‘soft’ data, where the usually reliable business and consumer surveys have been suggesting strengthening in global growth momentum for some time now, while the economic data that feeds through into the Gross Domestic […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment