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&#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.”

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