Paul Hudson, CEO of Cirencester Friendly, welcomes recent FSA proposals to exempt certain Holloway-style protection products from the RDR's fee-charging and professionalism rules, but insists there is still work to be done.
"The RDR in its original state was a real concern to a number of Holloway providers. After all, the FSA is about encouraging good financial services not putting good product providers out of business. But we have also been trying to get Holloway products on a level playing field with other Income Protection products, which are fundamentally the same but don't provide an opportunity to build up a modest capital balance for the policyholder. The underwriting surpluses of pure protection providers go to the company shareholders. Holloway providers are mutuals so available surpluses g...
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