This decision, made yesterday, means that critical illness cover and other products proposed to be categorised as ‘higher risk’ will not be selected against in the advice process, protecting the 116,000 homeowners previously highlighted as being at risk from this proposal.
Graham Newitt, Protection and Housing Director said: “The regulator’s change of heart means advisers can continue to recommend this vitally important product for homeowners without incurring unnecessary additional regulatory burdens and costs. This should ensure that advisers continue to offer this valuable cover to fully protect consumers.
“I am also pleased that the FSA has taken on board our comments that the way forward is to ensure that customers are made properly aware at outset of the specific details of the products they are buying so they can make informed decisions rather than regulating the product out of existence.”
