ABI tells members to compensate consumers directly

While there is nothing stopping life offices from making it clear they will not deal with third-party CMCs unless at the insistence of the customer, as Legal & General (L&G) has done, the ABI has taken its strongest line yet towards advising members to have no dealings with CMCs and advising policyholders to cease dealing with CMCs altogether where possible. In a move supported by the Association of IFAs, the ABI claims it is keeping within the spirit of the Financial Services Authority’s guidelines on dealing with CMCs in the wake of mortgage endowment complaints, however, its interpretat...