When I first started working in the Financial Services Industry in 1980 life was so simple. Firms selling Unit Trusts needed a Licence to deal in Securities as the Prevention of Fraud (Investments) Act applied. The Government at the time decided to extend regulations to those that promoted themselves as Insurance Brokers. People that wanted to use the term "Insurance Broker" had to obtain a licence. There were no such requirements for Insurance Consultants.
Anyone could set themselves up as an Insurance or Pensions Intermediary - provided that they could get an "Agency" from an Insurance Company. Customers were "sold" insurance, investment or pension products and healthy commissions were earnt by Intermediaries.
Large Insurance Companies like the Prudential, Pearl Assurance and Legal & General all had direct sales forces - numbering many thousands. They provided a valuable service to consumers. Many Widows were thankful that the man from Abbey Life had sold their husbands term assurance policies - often at the time perceived to be "hard sold".
Then we had the start of the Nanny State.
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