Non-disclosure
The Law Commission's latest review on non-disclosure and misrepresentation has caused frustration about where advisers' loyalty should lie.
The review stated that single-tied or multi-tied intermediaries work on behalf of insurers. However, those that research the whole of the market have loyalty to the consumer.
Nick Kirwan, head of health and protection at the Association of British Insurers, said it puts intermediaries in an awkward position.
IFA Alan Lakey, principal of Highclere Financial Services, said: "Looked at logically, the concept of seeking out anything but whole of market advice is nonsensical."
Only a whole of market adviser can adequately service their clients, Lakey explained, adding: "A tied adviser will not be able to fight clients' corners as they are effectively employed."
Peter Chadborn, principal of CBK, agreed with Lakey, adding that he was always working for his client and not the insurer. "If the adviser focuses on what value they think they are providing for their client then that should help towards ensuring good quality advice and treating customers fairly," he said.
