Only a quarter of advisers are giving correct advice, while several banks have been named and shamed for either misselling products or claiming to be multi-tied when they are not, says Which?Mystery shopping by the consumer body into the pension and protection advice markets found that IFAs performed best but only 34 per cent passed what Which? describes as the “benchmark for good advice”. Just 26 per cent of all financial advisers of the total of 57 visited met the grade. Common mistakes incl- uded non-disclosure of key facts on costs, inadequate fact-finds and failure to discuss benefit entitlements. Others did not assess attitude to investment risk on pension sales. Which? also claims Abbey missold two protection policies after it recommended a payment protection plan when an income protection policy was more appropriate for long-term sickness. The research reveals that a Bradford & Bingley adviser claimed that he was free to choose which protection provider to use despite being tied to Legal & General while advisers at HSBC and Hali- fax were both said to have claimed that they offer protection from a range of advisers when they are single-tied. Personal Finance Society public affairs director John Ellis says: “We are getting a lot of information which shows failings by the mar- ket. Some people need educating.” Abbey, B&B, Halifax and HSBC stress that they have strict procedures to ensure correct products are sold.
The ABI has again failed to prove its case that insurance companies can provide a better model for running Personal Accounts, says the TUC.Speaking after the ABI unveiled the latest version of its proposal for how the scheme should be run, TUC general secretary Brendan Barber says the trade body’s submission is still overshadowed by […]
Regency Mortgage Corporation has been fined 56,000 by the FSA in the first action the regulator has taken against a firm for sales of payment protection insurance since general insurance regulation was introduced. The firm was fined for breaching treating customers fairly principles and poor compliance procedures.
Legal & General
Portfolio Plus Trustee Investment Plan
The Association of British Insurers is supporting the abolition of the age 70 rule on protection products. The FSA’s consultation on the rule is due to end on September 6 and providers and trade bodies are expected to call for its abolition.If the rule is scrapped, Icob advisers will be allowed to sell policies maturing […]
Dividends are under pressure in some areas: but reliable yields can still be found. So says Adrian Frost, manager of the Artemis Income Fund, in conversation with Lawrence Gosling.
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In August 2015, I made the mistake of checking my work emails late one Sunday evening. Instead of turning in for the night, I poured myself a fresh cup of coffee and turned my laptop on. The reason was an embargoed press release from the FCA announcing it was about to undertake a wholesale assessment […]
Two years on, has the FCA’s flagship reform to improve access to advice been a success or just a damp squib? Advisers are concerned that while reforms outlined in the Financial Advice Market Review will eventually have a positive impact, progress so far has been disappointing on improving access to advice. Critics point to a […]
HMRC has decided to withdraw 6,000 of its controversial notices that require tax penalties to be paid upfront, the Financial Times reports. Accelerated payment notices were introduced in 2014 as part of a crackdown on tax avoidance and give recipients 90 days to settle up. They allow HMRC to collect money from people it deems […]