The Treasury's announcement of a 1.5 per cent price cap for its Child Trust Fund shows it has recognised low cost products are no use to consumers if industry the cannot afford to produce them, financial services specialist consultancy Beachcroft Wansbroughs has said.
Beachcroft Wansbroughs Consulting managing director Richard Hobbs says this is a good step but it remains to be seen whether Treasury will follow this logic through for other stakeholder products.
Hobbs says: “The industry should not expect simply to be let off the hook. Putting pressure on the industry to improve efficiency and to get charges down will still be high on the Treasury's agenda. It must remain a high priority for industry.”