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Long-term care to be regulated

Finally, the treasury has placed long-term care insurance under full FSA regulation in a move marking the first time long-term care insurance has been regulated.

4 December 2001

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Finally, the treasury has placed long-term care insurance under full FSA regulation in a move marking the first time long-term care insurance has been regulated.

Ruth Kelly, economic secretary to the treasury, claims the move would give consumers more protection. She comments: "Long-term care insurance can be expensive and tends to be sold to people at the same time as wider financial planning for the last few years of a person's life. If someone eventually needs care they do not want to find their insurance will not pay out for the level of care they expected."

The treasury decision has been widely welcomed by the industry.  Peter Gatenby, director and general manager of Age Concern Financial Partnerships, adds: "This is an important step for the development of the LTCI market and removes the potential for mis-selling in the future."
Age Concern England has long argued that long-term care insurance should be regulated, adding that regulation must be accompanied by appropriate training and a competence testing mechanism for all those advising on long-term care insurance planning and products.

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