Co-operative Insurance Society is urging the Government to use stakeholder as an opportunity to raise awareness of socially responsible investment.
CIS says the Government needs to ensure customers are fully aware of the investment principles behind any pension scheme. All stakeholder pensions currently have to produce a statement of investment principles but there are no rules on how this information is presented to customers.
CIS says its recent research shows 81 per cent of investors want to be kept informed by their financial services providers about investment policies and 52 per cent value a commitment to investing responsibly, provided they get a good rate of return.
The company says that, by describing the investment criteria at the point of sale through incorporating the details into key features documents, individuals can make an informed choice.
But CIS does not expect financial services providers to be forced into taking any social or ethical stance.
General manager Martin Clarke says: “We believe the introduction of stakeholder gives the Government a golden opportunity for it to promote its socially responsible investment agenda.
“Stakeholder is intended to be one of the most common personal investments on the mass market.”