Ron Sandler's recent review of the medium to long-term savings industry neglects the role of advice,...
Ron Sandler's recent review of the medium to long-term savings industry neglects the role of advice, instead focusing solely on the products offered, according to Owain Wright, head of the Care Funding Bureau.
However, providers of long-term insurance, Age Concern Financial Partnerships, disagree.
Wright believes some products such as long term care, which require detailed advice, could suffer as a result of the review.
He said: 'Ron Sandler's model for long-term savings is too product-oriented and takes virtually no account of the role and value of advice, a mistake which will cost consumers directly. For example, long term care and calculating how to fund it is extremely complex ' largely because the regulation governing it is packed with anomalies and loopholes. Sandler's model can only work if he is able to simplify every part of every advice sector.'
By creating simple products to be used by everyone, advice will take on a less important role, added Wright.
'In his quest to create 'off-the-shelf' financial products, Sandler focuses on the tangible goods themselves ' by making them simpler, advice will assume a lesser role which, in turn, means consumers can employ lesser qualified advisers.'
However, the Sandler review was not designed to cover the whole of the protection market, but with more onus being placed on investment, according to Chris Ellicott, technical manager at Age Concern Financial Partnerships.
He said: 'Sandler spoke about basic financial products for ordinary people and did not mention income protection, Inheritance Tax planning or long term care. This is not unexpected or detrimental, it is just everyone should save and have a pension, but not everyone has income protection or long term care insurance.'
