Commission based financial advice to come to an end

It has been reported recently that financial advice based on commission is to go through a clampdown, with the aim being to put an end to commission based financial advice by 2012. Read more

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Seek advice on insurance, urges Biba

Consumers have been urged to seek advice from an insurance broker before taking out a policy by the British Insurance Brokers’ Association (Biba).

Graeme Trudgill, technical and corporate affairs executive at Biba, has said that many insurance policies have become over-complicated and could be confusing for customers.

He advises people looking for insurance to consult a broker in order to avoid over-insuring and wasting money on “too many frills”.

Mr Trudgill commented: “The broker would be the best person to advise individual customers [on what cover they need] depending on individual circumstance.”

He added that over the past few years many insurers have made their policies more comprehensive and have tried to “include too many frills rather than sticking to the basics”.

Earlier this month, financial advice website Fool.co.uk reported that the average consumer takes out six different types of insurance on an annual basis costing £1,500 per year, yet is unaware of how much they are actually covered for.

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Consumers “don’t take the time to read the small print”

When buying into financial products, such as critical illness cover and private medical insurance, “people tend to look at the top line and not the small print”, says financial experts.

Financial advisory firm Ashley Law said that those consumers who purchase products which are cheaper may find they have lesser benefits.

Jock Cassidy, director of Ashley Law, said: “If people don’t take the time to read the small print, and I doubt very much if they do because it’s not exactly the most interesting read, then they’ll go for the cheapest option.”

He added that when a person changes a provider of a financial product “it’s a guess on my part is that it’s [the decision] purely cost-driven”.

Meanwhile, David Elms, chief executive of Unbiased.co.uk, commented has said that record levels of business are being driven to independent financial advice through the company’s ‘Find an IFA’ service

As a result IFAs are converting the leads at a greater rate than before.

Tags: result, personal finance, financial advice, time, David Elms, business, line, firm