Reforming with-profits will depend on IFAs rather than the FSA punishing the worst providers, according to Consumers' Association senior policy adviser Mick McAteer.
Speaking at a with-profits seminar hosted by Standard Life in London this week, McAteer said it would be up to IFAs to finish the job of reforming with-profits which was started but left unfinished by the FSA. He criticised the FSA for doing nothing to help the 10 million people trapped in with-profits policies.
McAteer's comments come as Chartwell says it has persuaded Friends Provident to publish the performance of its underlying with-profits fund.
Chartwell's with-profits guide, which lists the 14 major providers, found only L&G ref-uses to provide details and Scottish Widows only discloses details to Chartwell but not for publication.
McAteer says: “It is up to IFAs to finish the job that the FSA has only half done. With transparency comes more cho-ice but also more responsibility. We are looking to IFAs to select the best and punish the worst.”
Chartwell Investment Management chief executive Craig Wetton says: “The ability to see under the bonnet is crucial – we will not be selling L&G's with-profits bond. IFAs are perfectly capable of driving the changes. If IFAs want to advise on these products, they should be doing the research.”
L&G head of public relations John Morgan says: “We are fine with being the only major office not to disclose with-profits investment performance – it is our decision. We are waiting to see what the FSA requires and we will disclose thereafter.”