Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:
High Court ruling may increase interest-only mis-sales compensation
I suppose the first thought (after the moment of blind panic, toys out of the pram, dive onto a job site) is what was the sales process, compliance and reasons for recommendation letter robust?
Obviously as the court has found in favor of increase in the compensation it would appear not, but what can we as brokers be doing or rather what should we have been doing?
What happens when a broker has followed a sales process, made the client aware of the risks (positive and negative) documented it, made the client aware and the client has made a choice to proceed, then what?
That is the cause for concern for me, same with protection in many respects we have all no doubt faced the client consultant dance around what cover to take, how to best place it etc.
We can’t disturb the client too much or it’s a hard sell, if we don’t disturb enough the client is not informed, disclaimers are too wordy and put clients off, but we need something signed to be able to demonstrate understanding for every product you have access to and keep them on file or it’s not provable you did it.
At times I see this industry as no longer being there to help and service a client, but rather a C.Y.A exercise for brokers. where is the I.O issue going to end? Will this now lead landlords, people who didn’t take out ISA’s etc all coming out of the woodwork to try and get some compensation?
Rob
18 Oct 2012 | 13:27
You can see more of this week’s best reader comments by clicking HERE and read a round-up of the biggest news stories HERE.
