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1% cap fears over new plans – Friends Provident

Friends Provident supports Sandler&#39s proposals to introduce a set of simple regulated products but says experience of stakeholder pensions suggests that a 1 per cent cap may restrict the take-up of new stakeholder products.

It stresses that consideration should be given to the effect these proposals may have on the availability of independent advice in the future and welcome Sandler&#39s recognition that fees based on product sales are important in not discouraging consumers from seeking advice.

It endorses a reduction in sales regulation in light of the proposed introduction of product regulation.

Managing director Ben Gunn says: “We applaud the proposals for simplification and improved clarity.”

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