New ABI code tightens sale of long-term care insurance

The Association of British Insurers has announced details of its new code of practice covering sales of long-term care insurance products, which from 1 January will be regulated by the FSA in the same way as investment products. The code is intended to strengthen consumer protection through the introduction of more stringent rules on the roles of both insurers and IFAs. A primary rule will require insurers "be satisfied that financial advisers are competent" in long-term care insurance products before allowing them to engage in sales, the ABI says. And insurers' sales s...