The FSA has abandoned the reading-across of RDR labelling to pure protection.
The FSA had previously suggested, in Consultation Paper 09/31, that it was considering reading-across RDR labelling to pure protection, introducing definitions for advisers to be either 'independent' or 'restricted'.
The regulator said, in CP10/8, issued today: "too many consumers have a limited and incorrect understanding of the cover and other features of their policies."
It added: "In our research work, we found that a common failing among advisers was inadequate explanation of the extent and limitations of cover. Our priorities now for pure protection are to deal with these issues - and we recognise that they will not be addressed by introducing a new labelling regime. We are therefore not planning to consult on read-across of RDR labelling in the near future. We will keep the issue under review."
