CII propose new training requirements for LTC insurance syllabus
Demands for all long term care (LTC) advisers to pass an approved exam before giving advice have been made by the Chartered Insurance Institute (CII).
The proposals followed the CII's discussions with the Financial Services Authority (FSA) and the Skills Council for Financial Services (SCFS) regarding the development of the new LTC insurance syllabus.
In its response to the FSA's consultation paper (CP) 200 on LTC insurance, the CII said that grandfathering would lead to a two-tier advice system and consumer confusion in the market.
Lucy Courtenay, qualifications director at the CII said: "Given the complex nature of long term care insurance advice and the potential vulnerability of consumers, we believe that all advisers should be subject to the new training and competence requirements."
The CII showed its support for the FSA's proposal to regulate LTC insurance as an investment product and believes that regulation should also encompass equity release schemes when they are used to fund LTC insurance costs or life time mortgage arrangements.
Advisers were also warned against postponing taking any examination or undertaking training and competence on the grounds that the new regime will have different requirements. To combat this, the CII called on the FSA and SCFS to make this position clear and so to avoid a potentially damaging training and competence hiatus.
Owain Wright, head of the Care Funding Bureau, agreed with the proposals put forward by the CII.
"For advisers in the long term care market, it is imperative that they fully understand the workings of insurance and the State system. The CII has done well to highlight the problems grandfathering may cause," he said.
IFACare, the national organisation for LTC advisers, also stressed concern over the proposals and called for acknowledgement of the different types of product in the market.
