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ABI says reforms will help customers to see the benefits of with-profits

The ABI says the FSA has adopted much of its proposals for with profits reform in CP207 published this week, and says life offices are not treating customers unfairly at the moment.

The FSA proposals call for the introduction of the publishing of targets for payouts, the application of MVRs to be limited to cases where there has been a significant change in the value of the fund&#39s assets or surrenders are high and restrictions on distribution of surpluses.

ABI director general Mary Francis says: “The need for reform does not stem from customers being treated unfairly but from the need to keep pace with changing consumer expectations of information and accountability.”


Pensions edge

To argue that more people should be using a self-invested personal pension as opposed to a stakeholder pension based on past performance alone rather skirts the issues involved in deciding which pension route to take. The launch of stakeholder has been followed by the whole pension market simplifying and reducing the charges on other pension […]

Correspondent&#39s week

Christmas is all around at Canary Wharf, home of the Daily Mirror, as artificial trees have been put everywhere over the weekend and the central atrium is festooned with strange pine cone and glitterball arrangements. It is terribly festive unless you are at the FSA, which has not yet joined in although I am sure […]

&#39CI guarantees will stay but become more expensive&#39

Guaranteed rates will still be available in the critical-illness market in a year&#39s time, according to Lifesearch senior technical adviser Kevin Carr. Following talks with reinsurers and providers, Carr says he is confident that guarantees will still be available next Christmas. In Lifesearch&#39s inaugural quarterly protection market report, he warns that there are likely to […]

Millfield cuts losses and boosts turnover

Millfield Group has reduced its losses and increased turnover by two-thirds while agreeing a £10m investment in its Lifetime wrap venture from Norwich Union. The Aim-listed national IFA cut its losses by 4.5 per cent to £5.6m in the six months to September 2003 from £5.9m for the same period last year and saw turnover […]


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