Aifa says the FSA should inc- lude availability of advice as part of the suitability criteria when advising on personal pensions to take into account the lack of IFAs selling stakeholder products.Responding to the FSA’s consultation paper on Suitability Standards for Advice on Pers-onal Pensions, Aifa says IFAs and whole of market advisers are rightly expected to recommend the most suitable products. But the majority of IFAs cannot afford to sell stakeholder products, arguing that the 1.5 per cent charge cap effectively excludes the cost of advice. Aifa says the availability of advice should therefore be included as a factor in determining the most suitable pension product for a client. It is reiterating its support for the scrapping of RU64, the rule requiring financial advisers to explain in writing why the personal pension they have recommended is at least as suitable for the customer as a stakeholder pension. Deputy director general Fay Goddard says: “All the evidence to date suggests that without full advice, people simply will not buy pensions. The regulatory regime should allow for the cost of advice to be met through the product and this would benefit those who can only contribute low amounts.”
Absolute Return Bond Fund
Mortgage 2000s sourcing system Encore has announced that they are to extend their offering of connectivity to back office systems by launching a two way link with MortgageStream. This will enable their users to import and export client and lender data plus all relevant documents including KFIs and Fact Finds to and from MortgageStream.It has […]
Scottish Widows Investment Partnership has recruited Gartmore’s Alix Stewart to run its corporate bond plus portfolio. Stewart ran Gartmore’s corporate bond fund.
Life insurers are accusing the FSA of washing its hands of the Treasury select committee’s recommendation for an industrywide rating system for investment funds. In its latest meeting with the Financial Services Forum, the FSA said the dangers of implementing such a system were too high but it gave invited the industry to come up […]
By Robin Geffen, Fund Manager & CEO This is a testing time for investors. Over the past year the market has been driven forward by strong fundamental trends underpinned by changes in the real world, but over the past month a more animalistic sentiment has sent shares plunging. As we consider the remainder of the […]
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