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IFAs could gain council referrals under Social Care Bill

by Brian Cantwell, Tim Cooper on Feb 11, 2013 at 17:34

IFAs could gain council referrals under Social Care Bill

Advisers could receive a boost from government plans to reform the way long-term care is funded, through local councils referring self-funders to IFAs.

New Model Adviser® understands that the latest draft of the Social Care Bill contains an amendment prescribing local authorities to refer self-funders to financial advisers.

The draft bill containing the amendment is currently being scrutinised by a committee headed by Paul Burstow.

Lorreine Kennedy (pictured), head of care fees at Hertfordshire-based IFA Care Matters, said: ‘We are aware of a draft amendment to the Social Care Bill that will say that all citizens should be referred to financial advisers.

‘It is being looked at by the scrutiny committee and if it gets passed, local authorities will have an obligation to [refer] self-funders,’ she said.

12 comments so far. Why not have your say?

Phil Sipocz

Feb 11, 2013 at 17:56

No doubt they will want it to be free advice. God forbid anybody should have to pay.

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Chris Miller

Feb 11, 2013 at 18:09

What's that I see in the distance?

Looks like a social care misselling Tsunami heading our way.

Whatever we do will be wrong.

To be honest, if someone made me choose between a box containing 10 social care transactions to advise and be liable for, or a box containing 10 stroppy cobras, I'd take the cobras......

.....at least there's an antidote for the cobras.

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Peter Fisher

Feb 11, 2013 at 18:10

How do you know that astute commercially minded Social Services or County Councils are not already engaged in passing clients for advice on Later Life Financial Planning matters?

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Barman

Feb 11, 2013 at 18:32

A large national firm will pitch for this business and cross sell like mad.

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Darren Lloyd Thomas

Feb 11, 2013 at 18:48

Chris Miller - brilliant comment - made me chuckle - a lot.

You are right as well. I have stupidly ventured into the world of trying to provide information and advice to the local authorities before. Oh how the public sector (other half) live!

To say that they expect something for nothing is an understatement. I'm going for those cobra's mate! x

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NeilG1962 via mobile

Feb 11, 2013 at 19:11

Well my experience to date of Referrals from our County Council is that they are very keen to engage, are happy (if they're acting as deputies) to pay and are looking to tick the box on their checklist to say they have made a referral to a suitably experienced and qualified adviser. If you cynics don't want them then all the more for me!

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BPU

Feb 12, 2013 at 08:22

Remember NHFA.........

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Sam Caunt

Feb 12, 2013 at 09:38

No doubt we will get callers from people saying that they are working with the council to provide quality IFAs to give this advice. Sign up and we will provide you with leads......

This is a serious warning to firms and advisers about this leaches.

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NeilG via mobile

Feb 12, 2013 at 10:01

I do. They flogged inappropriate Investment Bonds to old people. Owned by HSBC. Enough said.

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Michael Brown

Feb 12, 2013 at 10:27

Hey people

If they want my advice they will be referred to RDR and will pay my hourly fee.

After all if they went to the solicitor that’s what they expect to get and so that is what they will get from me.

It could be seen as a time to earn just giving advice at a meeting with no sales to pay the PII and FSA costs for?

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Lorreine Kennedy

Feb 12, 2013 at 13:30

Some interesting responses (above) - and some cynicism. Our experience is that when working with Local Authorities there are many people who really want to do the right thing for their citizens. Local Authorities have started to recognise the real value that firms such as ours bring to the community. Referring citizens to specialist firms will, in the long term benefit local tax payers. The resultant financial advice received in many cases means that in many cases that that citizens do not run out of money, and thus return cap in hand for more support.

I agree with Neil G - (NHFA - they were owned by HSBC - I rest my case).

Finally, on the subject of fees - fees are seldom a problem when clients recognise the quality of information and advice that a specialist is able to provide.

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Mr Jason Charles-Bourne ACIDP, IFSOFA

Feb 12, 2013 at 13:50

Some may argue that it may be worth taking the box with 10 social care transactions and the box containing 10 stroppy cobras and combine into one big box then place in a separate darkened room with sign "do not disturb". Terms and conditions apply.

Whatever the horrible outcome you can be sure that the regulator will hold IFAs fully responsible for the viper clash of personalities and not providing the serum either at all or in a timely fashion..

Lest not forget, IFA accountability and FSA accountability sit diametrically at opposite ends of the corelation scale

IFAs score a perfect 1 = fully accountable to client, FSA/ FCA, FOS, law, professional bodies, PI insurers, whereas the FSA score a perfect 0 everytime, accountable to no one but themselves and now beyond all reasonable doubt well and truly above the law).

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