Skandia locked in advice dispute with ABI

By MoneyhighStreet Staff. Published on November 4, 2008 This post currently has no comments.

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A dispute over sales techniques is likely to see Skandia leave the Association of British Insurers (ABI), the savings and investments firm has suggested.

Skandia employs different methods to push its products compared to other members of the association - as it prefers to use independent financial advisors rather than selling direct.

However, the ABI has recently proposed the introduction of "assisted purchase" techniques among members.

This means that customers would be sold products through consultation with an expert - a process which has similarities to traditional independent financial advice.

Skandia said that it feels that this technique blurs the boundaries between sales and advice too much and that it has "little alignment" with other ABI members on this issue.

Chief executive Nick Poyntz-Wright said: "We offer our investment solutions only through financial advisers because we believe passionately in the importance of quality advice to guide and support customers'' financial decisions.

"Unfortunately, fewer and fewer of our peers amongst the ABI membership share our focus on the advice sector. The time has come for us to step away."