View more on these topics

Who deserves to be bailed out in misselling crisis?

ABI plans to bail out IFAs over pension misselling has thrown open again the question of who is responsible for misselling. This is a sore wound.

Should IFAs carry the can for the Conservative Government and life offices which unleashed a wave of publicity about personal pensions which threatened to engulf IFAs? Some IFAs argue that in 1988 switching from an occupational scheme to a personal pension was the best thing to do. Is this defensible? Yes, to an extent – the problem only started to emerge six years later. But the fact remains that poor advice was given.

True, some clients who took out personal pensions were advised not to leave their occupational schemes. The problem is that the documents to support this are missing – many companies were not using full fact-finds until much later.

IFAs are crying out for actuarial help, partly because all the actuarial firms have been co-opted to the life offices. Few would object to help in this area.

But arguing that life offices have a moral obligation to rescue all IFAs is surely a grey area. That would imply that IFAs had no role in misselling. They clearly did. The problem is setting the cost to reflect this – something that the heavy-handed and complex review has not done. So, should a bail-out be limited to smaller IFAs, those firms without the resources of networks and nationals? Possibly. IFAs have a huge need for help. The life offices can give it and help put the misselling scandal behind the industry.

So far, we have had bully-boy tactics from the Government. But a blanket bail-out would be just as crazy and irresponsible.


Term rates slashed in Colonial&#39s push to IFAs

Colonial Mutual is planning a major push into the IFA market by slashing rates on its term insurance products and launching them to IFAs. The products to be sold through IFAs are level term insurance, premium and sum assured guaranteed, decreasing term insurance and pension term insurance. Product marketing manager Roy Chappell says prices have […]

LGIM bullish on property

Investing in property will deliver strong returns in 1998, according to Legal & General Investment Management. LGIM forecasts that returns on property should hit around 16 per cent this year. Managing director (property) Stuart Beavor claims that rental income grew by 5.6 per cent last year compared with just 1 per cent in 1996. He […]

Court extends pension rights for part-timers

The European Court of Justice has opened up the possibility of part-time workers applying for backdated pension payments. The court ruled last week that part-time workers can claim entitlements to pension benefits back to April 8, 1976. British law says companies have to backdate part-timers&#39 entitlements by only two years.

ABN Amro UK fund is focus of IFA push

ABN Amro Asset Management begins its push into the retail market in earnest this week with a mail and phone campaign targeting IFAs. It will focus initial marketing on the £41.5m UK growth fund, one of five funds it inherited from Carrington Pembroke which ABN Amro bought in October 1996. The relaunch comes after almost […]

Retirement - thumbnail

A downhill stroll?

The Department for Work and Pensions (DWP) has recently published new research, which once again demonstrates how the prospect of retirement is changing for older workers.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm