Wiltshire Friendly has said discussions with the FSA have resulted in an exemption from RDR rules ‘Holloway Policy Special Application Conditions' (HPSAC) for certain Friendly Societies.
HPSAC will now allow advisers who do not hold level 4 qualifications to continue to sell qualifying Holloway policies - with profit style individual income protection plans - and for commission to be paid on such sales.
The FSA has laid out strict guidelines under which qualifying plans can meet the RDR exemption criteria.
This requires illustrations provided at the inception of a plan to show a projected maturity value, at the mid-rate of the stated returns, not exceeding 20% of the premiums paid in over the lifetime of the plan.
The FSA will allow no more than 5% of cases to exceed the 20% limit, as long as the absolute maximum is 25%.
As a result of the exemption Wiltshire Friendly will review its individual income protection plan and improve the terms and conditions, with the emphasis on protection as opposed to potential returns.
John Sanders, Chief Executive of Wiltshire Friendly commented: "Whilst we already offer a number of bespoke IP plans for IFAs, we want to appeal to the wider IFA market and this exemption has given us the opportunity to completely overhaul the range.
"Standard features now include an Own Occupation definition for 24 months for all applicants, waiver of premium, an option to escalate cover at a fixed percentage, fewer standard policy exclusions, separate smoker rates and a maximum retirement age of 68."
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