Friends Provident has defended an adviser alert service after being accused of encouraging IFAs "to do its job for them".
The life company says Event Manager, which is triggered whenever a client changes their policy, will help advisers protect their existing book of business and can even help demonstrate TCF.
Subscribers will be alerted, among other things, if a client misses a premium payment, lapses on a policy or if the adviser is in line for possible commission claw-back.
But adviser Kevin Tooze, managing director of Equity Partners UK, says the service may not be as valuable as Friends claims.
"I would say Friends Provident wants to retain money and it's almost as if it is getting the IFA to do its job for them," he says.
"I feel advisers should have a good level of communication with their clients so this sort of thing shouldn't be necessary."
But Friends Provident eBusiness manager Steve Young says the service has been designed to inform advisers only.
"We're still doing exactly what we were doing before, but now we're flagging to the advisers if there is a potential issue. If they wish to do something they can. If not, we're not stopping doing what we do ourselves."
Young adds the service can add a "valuable dimension" to intermediaries' client relationship management.
"Clients may not appreciate the full impact of missing a payment or canceling their policy," he says. "If they haven't sought financial advice it could prove detrimental to their financial planning arrangements."
Sheila Harris, of Direct Life and Pension Services, says: "Event Manager enables us to contact our clients without delay to advise them of any changes, and the daily updates mean we are always on top of the situation."
Contact: Scott Sinclair, News Editor, 020 7484 9791 - [email protected]IFAonline
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