The Personal Finance Society (PFS) is seeking clarity from the Financial Services Authority (FSA) on whether advisers will need extra qualifications on long term care (LTC) insurance to remain independent post-RDR.
Under current rules, anyone wishing to advise on long term care (LTC) insurance policies must have passed an appropriate examination. However, unlike pension transfer advice, advisers in the LTC market do not need to be granted specific permission by the FSA to carry out the activity. With LTC insurance classed as a retail investment product, the PFS is concerned about the impact of RDR. Fay Goddard, chief executive of the PFS, said: "My question to the FSA is that, if it [LTC insurance] is an investment product that falls under adviser charging rules, are you saying to be independ...
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