The FSA is amending its ICOB sourcebook to allow pure protection advisers to offer consumers pension term assurance from April 2006, albeit with enhanced requirements.
Under current rules, only advisers working under the investment-oriented Conduct of Business Sourcebook are allowed to recommend pensions term assurance(PTA) to clients, as current rules only allow PTA to be sold with a pension. However, in proposed amendments to rules governing such products, the FSA notes just 1% of all term assurance policy sales are in PTA and changes to the pensions regime post A-Day should make it easier for consumers to consider taking out life cover, so alterations to the Insurance Conduct of Sourcebook will allow intermediaries to make recommendations for PTA as...
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