View more on these topics

ABI claims Sandler has not been open

The ABI has attacked Ron Sandler&#39s review of the financial services market for its lack of openness with the industry.

Speaking at the IBC Future of With Profits Policies in the UK conference in London last week, ABI manager of life insurance Kate Flavell criticised Sandler for his lack of dialogue with the industry. She claimed Sand-ler&#39s approach was in stark contrast to the open style adopted by the FSA for its with-profits review.

Her comments will fuel suspicions of a turf war between the regulator and the Treasury and raises fears that the Sandler report will be heavily critical of the life insurance industry, with Flavell predicting that the review will propose ringfencing of with-profits funds.

Flavell called for a future level playing field for with-profits, saying reformed with-profits should have the same Isa limits as other funds. At present, the low-profile insurance Isa is limited to £1,000.

The Sandler review for the Treasury was announced on the back of criticisms of with-profits in the Myners&#39 report at last year&#39s Budget in March 2001. The FSA with-profits review was launched in May and recently published its proposals for reform.

Flavell said: “Sandler has not been open with the industry and there has been no continuing dialogue with him, unlike the FSA&#39s with-profits review which has been open.”

Baronworth (Investment Services) director Colin Jackson was one of the IFAs invited to the Treasury for confidential talks with Sandler. He says: “The report will be published in due course and that will be the time to pull it apart or not.

“The idea of making with-profits Isa-able is excellent and will benefit older people attracted by the safer option of with-profits.”

Recommended

Guidelines for trustees

An independent set of guidelines to help new and existing pension trustees has been published ahead of the Myners&#39 review recommending new responsibilities.An independent group of trustees has collaborated to produce a code of practice that will help trustees assess whether they are undertaking their responsibilities correctly.Launching the guide in London last week, pensions minister […]

Ring the changes

1. Undertake a thorough audit of strategy and business processes with the support of an external consultancy 2. Question why things are done the way they are 3. Identify synergies 4. Identify inefficiencies 5. Remember that customers are the driving force behind the organisation 6. Set clear, achievable objectives 7. Implement change one step at […]

Schroders – Schroder UK Alpha Plus Fund

Tuesday, June 18, 2002Type: Unit trustAim: Growth by investing in equity securities of UK companiesMinimum investment: Lump sum £1,000, monthly £50Investment split: 100% in equity securities of UK companiesIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual 1.5%. Isa initial 3.25%Special offer: Initial charge reduced to 3.75%, 1.75% for IsasOffer period: Until July 5, 2002Commission: Initial […]

Actuaries urge for DB pension scheme alternatives

Actuaries are urging employers to consider alternative defined benefit pension scheme designs that allow employees and employers to share investment risks.The Faculty and Institute of Actuaries says pension schemes can be designed that allow companies to bear some or all of the investment risk up to retirement, but pass the risk to employees at retirement. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment