CA warns 'basic advice' regime may up mis-selling

clock

Selling stakeholder products through a basic advice process may increase the risk of future mis-selling because it will effectively reduce consumer protection, the Consumers' Association warned today.

It will also destroy consumer confidence in the long-term savings market, the Association said. The FSA yesterday published a consultation paper, suggesting unqualified sales people should be able to advice on the government’s new range of simple savings plans, in the hopes it would increase long-term savings in the UK. The CA criticised the proposal, deeming it both as "flawed" and "dangerous". Mick McAteer, CA's principal policy adviser, said: "Proposals to reduce consumer protection will be a huge incentive for companies to mis-sell. The FSA seems to have chosen to address the l...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Hitting milestones later in life could impact when people seek advice

Hitting milestones later in life could impact when people seek advice

People will likely be seeking financial advice later

Laura Suter
clock 19 April 2024 • 3 min read
Regulatory pressures taking a toll on industry stress levels

Regulatory pressures taking a toll on industry stress levels

'Regulatory pressures are the first thing on my mind’

Sahar Nazir
clock 19 April 2024 • 1 min read
Advisers blast FCA funding requirement of £755m 'inexorable'

Advisers blast FCA funding requirement of £755m 'inexorable'

‘I don’t really know what value I’m getting from the FCA – if any’

Hope Coumbe
clock 19 April 2024 • 2 min read