Think Tank: More assistance is called for in the run-up to FSA regulation
Advisers called for better support from insurers and more integrated compliance solutions from technology providers at the latest COVER Think Tank.
Deficiencies in the protection market were compared with the mortgage market, which was seen to be more advanced with regards to compliance. Guests at the debate, which discussed forthcoming Financial Services Authority (FSA) regulation, said more could be done to help protection advisers prepare for the new regime.
Speaking at the debate, Richard Verdin, sales and marketing director at Direct Life & Pension Services, said providers should take a leaf out of the mortgage market's book. "Mortgage lenders have worked very hard with the likes of Trigold and other providers, to ensure that come regulation day, they've developed jointly a satisfactory audit trail.
"I am aghast that the insurance providers are not working their socks off on this issue. In October people are going to find themselves with a wonderful auditable trail as far as the mortgage market is concerned, and some scrappy bits of paper on the protection side."
Gareth Jones, portal adoption manager at Assureweb, said the lack of support was down to bad communication. "The problem we and the providers have is that we cannot talk to each other as well as we'd like. Until we are able to sing from the same hymn sheet, the problem will remain."
The lack of general support in helping advisers prepare for regulation was also highlighted. Alan Lakey, senior partner at Highclere Financial Services, said it was networks rather than insurers that were providing support. "I have had a number of conversations about my intentions, views and concerns and the people who have been providing me with information are the networks. I haven't had any direct contact or information from providers. Maybe they will come, but it's getting late," he said.
Verdin supported this view. "Product providers' support during this process has been non-existent," he said.
However, Stephen Crosbie, product development manager at Scottish Equitable Protect, disagreed, saying there was support available. "Providers use different sets of tools and strategies to deal with existing clients," he said.
nA full report of the debate, sponsored by Abbey for Intermediaries, is free with this issue.
