Priority for the development of Sandler's proposed stakeholder products must be on deciding how liab...
Priority for the development of Sandler's proposed stakeholder products must be on deciding how liability is ring-fenced, said Lord Hunt in one of his final public speeches for the Association of IFAs.
Speaking at a Treasury seminar held in London on Wednesday, Lord Hunt, chairman of the AIFA said responsibility for sale and advice of the stakeholder suite needs to be affirmed, should things go wrong, before products are created, otherwise the industry may be unwilling to get involved in their development.
"Advice is much the same as many other things in life - the quality of the service you receive is linked to the price you pay for it," said Hunt.
"I remain concerned that half conversations with the unqualified will in a few years time be turned into talk of misunderstanding and recompense. Ron Sandler cannot stop the flood tide of the consumerist society.
"How will liability be ring-fenced? This is the main question. If it is not answered to the satisfy action of the financial services community, the intentions of the stakeholder suite will not be realised."
Hunt suggested that unless liability for sales and advice could be determined, the industry might be inclined to add costs to the products, to cover the prospect of mis-selling and mis-buying allegations at a later date.
Sandler's suggestion that the FSA should define 'mis-selling' would boost the confidence of the adviser, added Hunt.
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