FSA finds product lapse rates lower among IFAs

The latest figures for product persistency show that, apart from personal pensions, there is a higher frequency of lapses for policies sold by single tie representatives than those sold through independent advisers and by direct-offer advertisements. This may be because policies selected from the whole of the market by independent intermediaries tend to be better matched to the needs of the client, the regulator noted, though it said it may also be because IFAs tend to advise those on higher incomes who may be more able to afford contributions. Persistency rates for personal pensions ...