Lifesearch will be launching a protection seller's code of conduct proposal at its awards ceremony later today.
The code will cover six points ranging from explaining product limitations, both in line with the FSA requirements and to avoid product confusion, such as between aspects of life policies and critical illness policies.
In a similar vein to COVER's IP Campaign, the code requires extra clarity to be given to clients over Total and Permanent Disability Cover and Income Protection.
The planned code would also require those selling PPI/MMPI/ASU to discuss the cover's limitations and to introduce the concept of longer term cover.
Tom Baigrie, managing director at Lifesearch, commented: "All those who arrange or sell Protection provide vital cover for consumers in crisis. This makes it imperative that we serve well those who buy Protection, no matter how they do it.
"The brief list lays out the basic set of corrective behaviours needed in order to do that.
"It tackles only the most obvious current failings found in Protection intermediation and its provisions can easily be met on websites, or in telephone conversations or meetings, whether or not they are deemed by the FSA to be advised."
IFAs signing up to the code would need to make their advice status clear to the customer and to provide for possible repayment of indemnity commissions.
