FSA flags rise in advised bond sales by life insurers

Presenting its latest product sales data, the regulator noted an increase in the proportion of bonds sold with advice by life insurers, from 24% in 2010/11 to 40% in 2011/12. The data is submitted annually to the FSA by product providers and includes direct sales by firms' own sales forces, as well as sales made through intermediaries. "Investment bonds sold by insurers act as ‘wrappers' for other products, and a quirk in the rules means that they will continue to pay commission after the RDR is implemented," the FSA said. "There is a concern that some advisers will exploit loophol...