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&#39Cut the jargon of complicated and long key features documents&#39

Key feature documents are in need of dramatic simplification as in their current complicated format they serve no purpose whatsoever claims Sandler.
He is advocating KFDs which do not include much of the current jargon and that are significantly reduced in length.
The suggestion has been greeted positively by IFAs who agree with Sandler&#39s assertion that KFDs are too long and too complicated.
Sandler envisions KFDs would include only the level of charges, the investment objective and investment strategy of products and any obligations to maintain payments for a certain minimum period.
They would be handed to investors at the beginning of the sales process rather than after the deal has been done.
For educated investors who wanted more information, a second set of detailed KFDs would be available on request, similar to that of the proposed FSA changes for with-profits disclosure.
Alongside the KFDs, investors would also be given a Consumer Guide listing simple questions they should ask their adviser before purchase.
Wentworth Rose managing director Philip Rose says: “Over disclosure is as bad as no disclosure. If it is any longer than two to three pages, investors will not read it.”
Sofa chairman John Porteous says: “Adding a Consumer Guide certainly will not quicken the sales process but would increase consumer understanding about what they are buying.”


Lib Dems slam widows changes

The Liberal Democrats are warning that Pickering&#39s overhaul of pension legislation will unfairly hit widows who have lived in the expectation of being provided for in later life.They have called for more action to stop the haemorraging of money from company pension schemes.Liberal Democrat work and pensions spokesman Steve Webb says: “Among today&#39s pensioner, elderly […]

Consumers&#39 Association says report &#39nails&#39 industry

The Consumers&#39 Association says the Sandler review has nailed &#39the industry line that it serves consumer interest&#39 by finding the industry full of &#39poor products, bad advice and failed regulation&#39.It believes Sandler&#39s proposals will help address causes of mis-selling, as well as reduce sales of unsuitable products and improve the quality of advice.CA director Sheila […]

Pickering may call for three types of pension

Alan Pickering&#39s long-awaited recommendations for simplifying pensions, due out this week, are likely to call for the setting up of three types of pensions.But the full ramifications of his proposals will not bec-ome clear until the Inland Revenue tax simplification review is published in September.Pickering has said his and the Revenue&#39s work are “two parts […]

Royal & SunAlliance Eurolife – RSAE Glanmore Property Fund

Tuesday, July 9, 2002Type: Dublin listed companyAim: Income and growth by investing in commercial propertyMinimum investment: Lump sum Euros 15,000Place of registration: GuernseyInvestment split: 100% in commercial propertyIsa link: NoCharges: Initial 7.75%, annual 1.5%Commission: Initial 5%Tel: 00353 15009100


Lifetime Isa – how it works

According to George Osborne “people like Isas – because they’re simple”. Fiona Tait is not convinced… Contributions & bonuses What he said: “From April 2017, anyone under the age of 40 will be able to open a Lifetime Isa and save up to £4,000 each year. And for every £4 you save, the Government will […]


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