Selestia warns IFAs of potential "Sandler with-profits" mis-selling

Selestia today warned IFAs that they could be falling into a potential mis-selling trap because of products marketed as Sandler-style with-profits products, which it says are "nothing of the sort".

Selestia marketing director Bill Vasilieff says not only is the regulatory review of Sandler's proposals not complete, but the use of "with-profits" in marketing material could "create confusion and misunderstanding for investors".

"Transparency is paramount at present. These Sandler style products are not with profits and they include things such as MVAs," he says.

"IFAs should be taking a professional approach to portfolio construction based on sound asset allocation and other factors."

Selestia will be advising IFAs through the media and through its normal communications channels about its warning, saying that the way these products are marketed needs to be stopped as soon as possible.

"It will probably be years before problems come out," Vasilieff says.

Selestia's warning put out today says: "If these policies are allowed to be marketed by product providers as With Profits we will without doubt see IFAs put at significant risk from disillusioned clients."

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