View more on these topics

&#39Industry will be surrogate for the state&#39

Burns Anderson chief executive Jim Gaskin believes the finance industry will become a surrogate for the state as the Government scales back its role in welfare and pensions.

Predicting the introduction of compulsory contributions into pensions for employers, Gaskin said the thrust of Treasury&#39s policy was to drive resp-onsibility for financial security away from the state, with the individual investor carrying investment risk and employers left to deal with admin.

He said: “The industry will be a surrogate for the state going forward. CP121 is a charter for salesmen rather than advisers. The main driver of Treasury policy is to ensure the savings gap is filled and they hope depolarisation will achieve this but bancassurers are not known for the quality of the products they sell.”

Fee Based Advice sales director and G80 delegate David Lawson says: “The market has produced health and sickness insurance products that are already taking over the role formerly held by the Government. The failure of stakeholder, which is already evident, will be used as the excuse for handing responsibility for pensions over to employers.”


Outside Edge – Garry Heath

The financial services world is becoming increasingly surreal. Gone is the old image of a staid and sober industry with commonly held views, which encouraged thrift and temperance and created a world in which wealth creation was real, if a little slow. In its stead is a fashion industry in which views change almost on […]

Term sales rise by 14%

Term assurance sales were up 14 per cent last year to 1.6m from 1.4m in 2000 according to the latest Life & Health report from reinsurer Swiss Re. IFAs accounted for 653,498 of term sales up from 558,780 in 2000. Term represented 65 per cent of all UK regular premium life policies sold in 2001, […]

IFAs in the clear on endowments

IFAs have been publicly exonerated from having any involvement in mortgage endowment misselling by the chief financial ombudsman.Banks and building societies are to blame for mortgage endowment misselling with IFAs in the clear, Walter Merricks said at last week&#39s LIA Annual Conference in London.He said the vast majority of endowment problems have resulted from consumers […]

John Simmonds

Work and golf are the two big loves in the life of Towry Law managing director John Simmonds – and work is inevitably going to be time-consuming for someone willing to step into the shoes of the controversial former MD Douglas Black, who quit in December, just six months after the IFA firm&#39s takeover by […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment