Speaking at a recent industry dinner the Shadow Chancellor, Michael Howard, has warned that rather than pensions mis-selling, the next potential scandal to hit the industry could be pensions mis-buying.
In simple terms, following the Governments stance on significantly reducing charges of policies to offer the consumer better value for money, the impact has likewise been to reduce commission levels paid. As a result, many financial advisers will not offer advice on certain products without a client paying a fee for the advice. This is because as soon as an adviser offers the advice, they become liable for that advice. Therefore, there has been a move by the industry to offer clients access to products by what is known as ‘direct offer’ or ‘category C’ packs.Quite simply, all the information that is required for you, the consumer, to make an informed decision, about the potential policy is included in the pack. You make your own decision as to whether it is suitable and decide whether or not to proceed.
There is obviously a risk of purchasing the wrong contract. This is known as mis-buying. However, as you would have made your own decision, you have no rights to pursue a claim against any adviser, insurer or investment house.
At , we do offer ‘direct offer’ solutions for those who do not want advice. However, part of our success formula is that we also offer low cost, remote advice solutions, so that you can get help and guidance if you need it.
Visit the Help Zone now to check out all the ways that we can offer help to you.
Why not try our discount Ask An Adviser guidance service?