The regulator's plans for advice firms to hold cash reserves if conducting business outside their professional indemnity insurance (PII) cover will push firms to evaluate which products they use, advisers have said.
Informed Choice managing director and IFA Martin Bamford said the proposal from the Financial Conduct Authority (FCA) could act as a disincentive against recommending non-standard products not covered by PII. "I don't think people would get involved in selling products that are not covered by PII if they knew they had to put extra capital aside," he said. "Part of me isn't a huge fan of the idea, though, because we already have PI insurance, capital adequacy and the FSCS [Financial Services...
The Financial Ombudsman Service (FOS) will maintain its current funding model for the next financial year despite recognising it is unsustainable in its current form.
The FCA has confirmed that, while businesses will have to identify certified staff from day one under the Senior Managers & Certification Regime (SM&CR), they will have a year to complete fitness and propriety assessments.
Scott Cadger runs through the four most common reasons people give for not taking out critical illness cover - and some suggestions on how advisers can offer reassurance on each in conversations with clients
The Financial Ombudsman Service (FOS) has sought to provide clarity regarding any potential confusion over the products advisers should recommend to clients to cover a decreasing loan or mortgage.