View more on these topics

&#39Baby bonds&#39 for all but single firm for gateway

Providers from across the market would be encouraged to offer child trust funds while the savings gateway would be limited to one provider under Treasury proposals released in its Pre-Budget Report.

The child trust fund would either be available through an open market where providers could compete to offer the products or a limited pool of five to 10 providers who would vie for licences to market them.

The industry is strongly in favour of an open market, saying a pool would limit the opportunities for IFAs and would end up being dominated by the largest players.

But final proposals for the savings gateway, aimed at increasing savings for the poor, point towards a single provider, because the Government believes providers would not find them commercially viable.

The CTF could be invested in a wide variety of savings vehicles, including passive and actively managed collective investments.

Test pilots for the savings gateway have been unveiled for three to four undisclosed communities to test their viability.

Autif director general Anne McMeehan says: “Autif is pro-free market. We would have concerns about an automatic restriction as to the number of companies allowed to compete. I suspect an organisation such as Consignia would suit the savings gateway well.”

Aifa director general Paul Smee says: “With limited pools you would get the market dominated by the largest players. There&#39s nothing in this that would squeeze advice out. I don&#39t think the Savings Gateway would be wildly exciting to IFAs however.”

Recommended

Newcastle capital safe bond closes on Friday

Investors have just three more days to invest in Newcastle Building Society’s Capital Safe Bond.The Bond, which closes on Friday, offers a 100 per cent capital guarantee over the three year life of the investment. Returns are linked to the FTSE 100, Eurostoxx 50 and Nikkei 225 indices, with investors receiving 85 per cent of […]

Brown heralds annuity shake-up

The Government is to publish a consultation on annuity reform early next year with the aim of increasing competition in the market place.The move, outlined in Chancellor Gordon Brown pre-budget statement this week follows Money Marketing reports that the Number 10 policy unit has invited proposals for reform and investigated the feasibility of transferring of […]

Equitable seeks explanations from former directors

Equitable Life has written to 20 former directors asking them to justify their behaviour in the past running of the society following legal advice by lawyers Herbert Smith.The letter was sent in a bid by the troubled life office to recover losses it suffered following a House of Lords ruling that it could not apply […]

FSA looking into Equitable reinsurance deal

The FSA is investigating new evidence from Equitable Life that former management did not inform the regulator of the true value of its reinsurance deal.A letter to Irish European Reinsurance Company from former appointed actuary Chris Headdon has come to light, showing the reinsurance contract signed in 1999 was worth substantially less than the £700m […]

Managing customers in drawdown

By Lorna Blyth, Investment Marketing Manager Delivering a decent drawdown review process takes time and resources. This article looks at how you can manage drawdown clients in a more cost-effective way. Most advisers are seeing an increase in drawdown clients following pension freedoms. Often these are clients with lower fund sizes, which means advisers are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com