View more on these topics

&#39Sandler set to blame FSA&#39s complex rules for savings gap&#39

Ron Sandler will lay the blame for the savings gap at the FSA&#39s door, stating in his final report that its complex rules dissuade consumers from investing, according to the Sunday Telegraph.

It is believed that Sandler will publish his recommendations in late May and will recommend the creation of a savings product even simpler than stakeholder pensions or Catmarked Isas and not subject to the same regulatory costs, the newspaper says.

The new product will be so straightforward that it can be sold off the shelf in banks or even supermarkets.

Aifa says it would welcome such a move as compliance costs make it difficult to offer advice, creating a barrier to saving. However, the IFA trade body says it would be difficult to implement the proposition as stripping out regulation would involve a number of authorities such as the Treasury, the FSA and the Inland Revenue working together.

Sandler is also believed to be look at shaking up the life insurance industry. It is thought that one proposal under consideration is to prevent listed providers from using with-profits policyholders&#39 assets to cover the company&#39s running costs and dividend payments.

Industry sources are suggesting the publication of the report will be in late May to coincide with the FSA&#39s with-profits review.

A Treasury spokesman would not comment although, privately, Treasury sources say there was nothing in the Sunday Telegraph&#39s story which surprised them.

Aifa director general Paul Smee says: “You can create the product but can you create the demand for it? This is what stakeholder was supposed to be all about. Saying that, the cost of advice has always been distorted by the cost of compliance and the proposals in CP121 will only make this worse.”


&#39IFAs will register in France to beat DPS&#39

The defined-payment system could lead to IFAs relocating abroad or facing competition from European counterparts moving into the UK, according to Aifa.The warning comes as part of Aifa&#39s first response to CP121 which focuses on the DPS, describing it as an anomaly.It says: “We believe that it would be possible for advisers licensed in another […]

Aegon is shelving direct sales plan

Aegon has shelved plans to open a multi-million-pound direct-selling arm offering Oeics and Isas until the investment market shows signs of recovery.The new subsidiary, headed by former Scottish Amicable marketing director Gavin Stewart, was due to open in Stirling in the summer. It was intended to lead Aegon&#39s push into the Isa market but it […]

&#39Commission and better than best to stay,&#39 says MP

Shadow Paymaster General Howard Flight is calling on the FSA to clarify its position on IFA commission and better than best, saying he was told they would be retained.In a private conversation held with a senior FSA official only days after the publication of CP121 in January, Flight said he was told the better than […]

&#39Make Cat compulsory on loans&#39

Nationwide Building Society is calling for the Government to make Cat standards compulsory for mortgages sold to “vulnerable” buyers or without advice, including internet sales.Its response to the Treasury&#39s Regulating Mortgages consultation claims “the biggest help for consumers is to find a place for Cat standards”.Nationwide, the only major lender to adopt the voluntary standard […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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