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&#39Stakeholder stunting growth in the market&#39

Stakeholder will hamper the competition needed to grow a healthy pension marketplace, according to research agency Cerulli Associates.

It says the 1 per cent stakeholder charge cap is the main factor which will constrict profitability and growth.

The report says the cap will restrict stakeholder to certain types of investment.

A further finding in the report, published this week, claims stakeholder pensions will hold less than £20bn in funds under management by 2006, which Cerulli says is dramatically lower than forecasts which have been made by the Government and life offices.

Cerulli&#39s report also forecasts that the stakeholder market will be dominated by a small number of big providers. It believes that the first entrants into themarket will be the most successful.

Consultant Thomas March says: “Because of the high quality of record-keeping and administration that stakeholder will require, plus the scale of business needed, the product will only lend itself to a few players. The 1 per cent cap will not allow a mix of investments in the pension investment portfolio.”


2001 onwards – a stalejp;der odyssey

We are going to be so busy over the next six months registering stakeholder schemes, fine-tuning administration systems, briefing employers and getting ready to sign up the first customers, we will hardly have time to look further ahead.So, before we begin the final lap of preparations, perhaps it is worth lifting our eyes to the […]

Stewart Ritchie

Recent surveys have shown that employers and the public are ignorant and apathetic when it comes to stakeholder pensions. But with just six months to go before launch, this may be about to change. The Government&#39s publicity campaign has moved up a gear with the publication of a guide for employers. This is an easy-to-read […]

Yield shield

IFAs believe they are being left in the dark about changes in the standardisation of fund yield calculations.It is now a month since the September 1 deadline for applying Autif&#39s recommendations. Not all fund managers have followed these guidelines and, when they have, many IFAs have not been told.In the past, the lack of a […]

Pink targets landlords with new mortgage product

Pink Home Loans has announced a new mortgage product with current account facilities aimed at landlords. In conjunction with First Active Financial, Pink are offering first-time or existing landlords home loans capped at 6.99 percent for the first year, reverting to LIBOR plus 1.5 percent after 12 months for full status applicants only. Pink’s sales […]


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