18th May 2021

IFAA: Are the Insurance Companies leading a Scam Against Your Firm?

I have had a long discussion with a handful of member and other firms about a potential scam that they have had visited upon them. We are talking exclusively about protection not investment products.

For this scam, you need your agency, an Appointed Representative or ex-employee who has advised on protection products using Indemnity from Ins.Co “A”. These cases are moved to another agency either after the adviser’s exit or even before.

Ins.Co “A” sees the transactions but does see fit to inform your firm just moves the cases over to Agency “B”. You are stiffed with an indemnity reclaim and the adviser gets paid twice.

It appears the chosen insurance company appears to see no “duty of care” with you as the original agency. Just to complete the picture; agency “B” may find itself as the next victim and again kept in the dark by Ins.Co “A”. 

I thought this type of behaviour had gone decades ago, clearly not.

Help Needed!

I need to know the scale of this scam. Clearly the investment only advisers and those who are paid on the drip are not affected. But has this happened to your firm recently?

Read more

Regulation

Registration

Free Registration and CPD

Read More

Related Articles_

YouGov: Are Consumers Getting Better Outcomes as a Result of the Consumer Duty?

Nearly three years after the introduction of Consumer Duty, are firms delivering the improved outcomes the FCA intended? Drawing on insights from more than 65,000 UK consumer interviews, this on-demand webinar from YouGov explores how perceptions of financial services have evolved since implementation. Discover which sectors and brands are leading the way, where gaps remain, and how different customer groups, including vulnerable consumers and younger generations, view their experiences today. Gain valuable insight into the latest Consumer Duty trends and what they could mean for firms looking to strengthen customer outcomes.

Read More

Panacea Conversations - Beyond the Questionnaire: Rethinking Attitude to Risk

Attitude to Risk is one of the foundations of good financial planning, yet it’s often reduced to a questionnaire and a risk score. In the latest episode of Panacea Conversations, compliance expert Tony Catt explains why the real value lies in the conversations behind the questionnaire. We explore adviser bias, client psychology, capacity for loss, vulnerability, and why risk shouldn’t be viewed solely through an investment lens. If you want to strengthen your Attitude to Risk process, this is a conversation worth hearing.

Read More

Panacea Conversations - Beyond the Questionnaire: Rethinking Attitude to Risk

In this episode of Panacea Conversations, we explore one of the most fundamental, and often misunderstood, aspects of the advice process: Attitude to Risk.

Read More

Login

Not yet registered?

Please complete this form to join our community

Name
Email
Company
Select your role:
Password
Confirm Password