Which? wants the FSA to extend its proposed non-advised mortgage sales ban to other product areas to deal with poor bank sales standards.
In its final MMR consultation paper the FSA proposed to ban non-advised sales where there is “a spoken or other interactive dialogue” between a customer and a firm, although high-net-worth borrowers can opt out of advice.
Which? Money editor James Daley says: “In too many cases, banks use the split between what is advised and non-advised to get themselves off the hook, in terms of taking responsibility for the sale. What providers need to be asking themselves is, are we taking the right precautions to ensure customers walk out of the door with the right products? It is not just mortgages where this is important, we think it is incredibly important to savings products such as structured deposits too, so we think it would be good to roll out more widely.”
Churchouse Financial Planning director Keith Churchouse says: “A very good example where banning non-advised sales would be beneficial is with Sipp sales. Customers are not always clear whether they have had an advised sale with these products, when they should receive advice.”
Aifa director Robert Sinclair (pictured) says: “The FSA mortgage proposal is a step forward but I think it is a particular type of customer that needs advice and not necessarily a certain product, so we should be careful about isolating further individual products.”