View more on these topics

Writing&#39s on wall

The FSA is reported as having said its research has revealed that much promotional material for structured products does not adequately explain the risks associated with investing in them. Fair enough. This is followed by assorted yet frustratingly unspecific platitudes about improving marketing literature.

But the FSA does go so far as saying that if consumers are not getting personally tailored advice, then an adequate explanation of risk is particularly important as they will be relying solely on the literature they receive. Fine. There is only one source from which such advice may be obtained – an IFA, for the simple reason that personally tailored advice is what good IFAs are best at providing.

The very structure of many structured products is complicated and no amount of additional text can be guaranteed to clarify exactly the balance of risk •reward that they involve.

A better solution might be to disallow the direct sale of such products so that consumers would not be able to invest in them without having taken personally tailored advice. They could still be marketed direct to the world at large but with the proviso that no application will be accepted other than through a fully regulated IFA.

Misbuying would be all but eliminated and someone would be clearly responsible for any misselling. How many regulatory personnel does it take to change a light bulb? Evidently, still rather too many.

Julian Stevens WDS Independent Financial Advisers, Kingswood, Bristol


More education is needed, not more products

HM Treasury and the FSA have got busy again regarding “simplified investment products” (FSA term) and “Sandler stakeholder product specifications” (HMT term). They have given a precis of feedback statements from the industry and also their initial responses to that feedback.From Sofa&#39s viewpoint, however, they both seem to be missing the point somewhat. Why do […]

Skandia – Series Six Group Executive Pension – Single Price

Type: Group executive pension Minimum premium: £200 a month per member, £15,000 a month per scheme Minimum-maximum ages: 18-73 Minimum group size: 10 Fund links: Choice of 317 funds from Aberdeen, Artemis, Alliance Berstein, Allianz Dresdner, Baring, BlackRock, Britannic, Credit Suisse, DWS, FirstState, Fidelity, Foreign & Colonial, Framlington, Gartmore, Goldman Sachs, Henderson, HSBC, Invesco Perpetual, […]

Status symbol

Stop a person in the street and ask them what image is conjured up by “certified” or “certificate”.The chances are that they will tell you that certified brings to mind either a person who is less mentally well than they might be or, in the case of certificate, the piece of paper you might receive […]

IFA profile: Scott and Casey

A few years ago, IFAs were famously told by one life insurance chief executive that only big players or niche players would survive.Scott and Casey Financial Management, an IFA based in Harlow and serving clients on the Essex and Hertfordshire borders, is medium-sized and generalist. But its directors, four of whom are gathered together in […]

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.


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 advice.

    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