SALE OF FINANCIAL PRODUCTS

Early day motion 1884, tabled 22 March 2006 by Baroness Burt of Solihull (Liberal Democrat). Signed by 57 members.

That this House recognises the importance of life insurance and protection products in helping families to cope financially with the loss of income following bereavement, ill-health or unemployment; acknowledges the need to ensure that when purchasing such products providers take into consideration the consumer's personal circumstances and the suitability of the product being sold; notes with growing concern the dramatic increase in recent years in the sale of life insurance and other protection products on a non-advised basis and the subsequent potential for large scale mis-buying; is concerned by the general lack of consumer awareness that purchasing such products without advice may restrict their ability to seek redress where products are later found to be unsuitable; and therefore calls on the Government to take action to require those selling without advice to act responsibly by making clear the possible limitations of their product in the context of the other options available, and posting clearer consumer warnings prior to the purchase of protection products highlighting the impact of non-advised sales on the level of consumer protection offered.

Signatures by party: Labour 25, Liberal Democrat 18, Conservative 11, Social Democratic and Labour Party 2, Scottish National Party 1.