Financial advisers support product levy
Wednesday 09 December 1992
Andrew Hummersone of Haden Welbeck & Associates in Kent said life insurance companies were already using a product levy to compensate customers who have suffered when dealing with their tied agents. He suggested life offices had already paid out pounds 60m this year.
To applause, Mr Hummersone added: 'A product levy is the only way. If policyholders want investor protection, unfortunately they have got to pay for it.'
Sir Gordon Downey, the chairman of Fimbra, said introduction of a product levy would require the co-operation of the Government and the life offices, which was not available.
Sir Kenneth Clucas, the Fimbra council member who recommended the shake-up that is intended to produce the PIA, said he had begun his review with a strong preference for a product levy but had rejected this option because of practical difficulties.
Sir Gordon said it was a 'travesty' to talk about the 'failure' of self-regulation, although there had been disasters.
Discussions about the PIA would be more fairly portrayed as co-operative than as 'a battlefield', he said.
He said Fimbra would be able further to reduce or clear its deficit of pounds 343,000 this financial year.
- 1 What happens to your body when you give up sugar?
- 2 Tourist films plane's descent just metres above packed Caribbean beach
- 3 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
Harrison Ford plane crash: Actor will make full recovery thanks to 'beautifully executed' landing
Tourist films plane's descent just metres above packed Caribbean beach
Oxford whistleblower's attempt to protect young victim of a sadistic gang went unheeded
How Homer Simpson discovered the Higgs boson over a decade before scientists
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...