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Regulation
AssureNet UK is an independent Internet
company which provides as an information, pricing and execution resource
on non regulated, UK Life
Assurance and
Protection Products. AssureNet UK is not an Independent Financial Adviser
and not regulated. AssureNet UK introduces clients to Internet Independent
Financial Advisers
when they
are seeking
advice, and
only
if the client asks.
The following reflects our understanding, expressed, we believe, in a
useful and practical way.
Regulation exists to protect you, the customer, against
being 'sold' unsuitable products. Regulation
applies to the agents (tied or independent) who place your business and
is a complex area. The main regulator in the UK for Financial Advisers
is the Personal Investment Authority. Our partner IIFAs are all
regulated by the PIA. The Financial Services Act 1986 sets out the legal
rules for selling financial services and advice; compliance with the Act
is policed by the Financial
Services Authority.
Non Regulated Contracts
Practically, Life and Pensions products
fall into two categories: Regulated and Non Regulated. Term Life, Critical
Illness and Income Protection / Permanent Health, because they
are simple protection products, are non regulated. However, the insured
persons (or for a joint policy, either of the insured's) age at the end
of the policy term must be less than 70 for a policy that has a term greater
than 10 years. If you independently investigate products, pick the contract
and company and decide that you want to buy any Life and Pensions product
in this product class, you can simply instruct an agent to do so on your
behalf. This reduced work means the agent can discount fees. If you do
not specify the contract and insurer or at any time request advice as
to suitability from the agent, the relationship may
become an advisory one for the agent. Only regulated Financial Advisers
can provide advice.
Regulated Contracts
Some products such
as Endowments, Pensions, Annuities
etc., are regulated. You can instruct an agent to buy something
you have chosen which is a Regulated Product, but the onus and duty of
care the agent faces means that the agent will require you to provide
more information so that he/she can establish suitability and give you
due care and Best Advice.
The agent handling the business will typically obtain from the
client a 'Fact Find' or 'Client Record Form', which gives details of the
personal circumstances, needs and risk preference of the client, in order
to point out the available options and /or make recommendations.
Our IIFAs
The third party IIFAs who we introduce you to give
advice are authorised by the PIA to carry out investment business and
are regulated. As regulated professionals, they need to comply with various
procedures intended to protect the client and maintain high standards
of business practice. They are reviewed by the regulator at least annually.
They cannot hold or accept money from clients. If you take out a regulated
Life, Pension or Protection contract, you must pay the Insurance Company
direct by cheque or Direct Debit Mandate.
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