Regulator does not support advisers over protection

In a poll of advisers, it discovered that 17 per cent directly blame the former FSA for the mis-selling of payment protection insurance, in that the former regulator had made it a requirement in 2004 for all advisers to offer PPI when advising on mortgages.

Since the scandal broke over PPI, 65 per cent of advisers said they believe the regulatory bodies have let them down. Advisers have said they believe the FSA should not have let the mis-selling go on for so long and that they should have acted sooner.

While 69 per cent believe the banks have been the prime problem when it comes to PPI mis-selling, 40 per cent of advisers still feel that the FCA does not support the selling of and advice on protection products.

Article continues after advert

John Bridge, director of sales and marketing at Cirencester, said: “It is disappointing to see that so many advisers feel they have had no support from the regulator when it comes to protection products.

“This is a vitally important part of financial planning and while PPI continues to dominate the headlines consumers are becoming less inclined to take up other protection products.”